"If the Official Settlements Balance Is Zero, a Current Account

question 436

Essay

"If the official settlements balance is zero, a current account surplus must equal the capital account deficit." Is the previous statement correct or incorrect? Briefly explain your answer.

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Definitions:

Better

An improved or superior condition, quality, or performance compared to a previous state.

High

A state of being under the influence of drugs or substances, which alters mood, perception, or consciousness.

Medium

A substance or material that carries or conducts something, such as waves or messages.

Automatic Processing

Mental operations that occur without conscious awareness or effort, allowing us to perform routine tasks quickly and efficiently.