Concerning the U.S.balance-of-payments statement, the sum of debits and credits on all transactions will always
A) be equal.
B) show a deficit.
C) show a surplus.
D) be unequal.

Question

Quizplus · Accepted Answer

The U.S. balance-of-payments statement must always balance, meaning the sum of debits (outflows of funds from the U.S.) and credits (inflows of funds into the U.S.) must be equal. This is because every transaction involving a payment must have a corresponding receipt, and vice versa. Therefore, the correct choice is (A) be equal.