If the Current Account Balance Has a $70 Million Deficit

question 47

Multiple Choice

If the current account balance has a $70 million deficit and there was no change in official reserves during that year, then we know that

• A) the capital and financial account balance must have a $70 million surplus.
• B) the capital account balance must have a $70 million deficit.
• C) net transfers were -$70 million.
• D) the balance of payments must register a $70 million surplus.
• E) the official settlements account balance must have a $70 million surplus.

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