In Order for the Balance of Payments to Balance

question 49

Multiple Choice

In order for the balance of payments to balance,

• A)the current account balance must equal the capital account balance
• B)international reserves must flow out of the country
• C)international reserves must flow into the country
• D)the current account balance plus the capital account balance plus the net flow of international reserves plus the statistical discrepancy must equal zero
• E)the current account balance plus the capital account balance plus the net flow of international reserves must be greater than the statistical discrepancy