While the supply and demand of a country's currency or trade may be imbalanced,the entire balance of payments must always balance.

Question

Quizplus · Accepted Answer

The balance of payments always balances by definition. It is a record of all transactions between a country and the rest of the world, including trade flows, investment flows, and financial flows. Every transaction involves a credit (receipt) and debit (payment), and therefore, the sum of all credits must equal the sum of all debits.

While the Supply and Demand of a Country's Currency or Trade