When all of the debit or credit items in the balance-of-payments are combined
A) merchandise imports equal merchandise exports.
B) capital imports equal capital exports.
C) services exports equal services imports.
D) the total surplus or deficit equals zero.

Question

Quizplus · Accepted Answer

When all of the debit or credit items in the balance-of-payments are combined, the total surplus or deficit equals zero. This is because every transaction in the balance-of-payments involves a credit and a debit entry of the same amount. Therefore, the sum of all credits must be equal to the sum of all debits, resulting in a net surplus or deficit of zero.

When All of the Debit or Credit Items in the Balance-Of-Payments