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Briana Evelyn
on Nov 26, 2024

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A deficit on the current account

A) normally causes a surplus on the capital and financial account.
B) normally causes a deficit on the capital and financial account.
C) has no relationship to the capital and financial account.
D) means that a nation is making international transfers.

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net secondary income, reflecting the difference between a country's savings and its investment.

Capital and Financial Account

A component of a country's balance of payments that records investment flows and purchasing of domestic firms by foreign investors, and vice versa.

International Transfers

Financial transactions where funds are sent across national borders, either by governments, businesses, or individuals.

  • Analyze the effects of current account deficits or surpluses on the capital and financial accounts.
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Adrian SbracciaNov 27, 2024
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