When there is a current account deficit and the official settlements account equals 0, then
A) exports exceed imports for the country.
B) the country is an exporter of capital.
C) the capital and financial account has a surplus.
D) the country has a budget surplus.

Question

Quizplus · Accepted Answer

When the official settlements account equals 0, it means that any current account deficit must be offset by a corresponding surplus in the capital and financial account, indicating the country is importing capital to balance its payments.

When There Is a Current Account Deficit and the Official