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Balance of Payments: Financial Account and Capital Account
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Problem 10
Balance of Payments: Financial Account and Capital Account
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21. Open-Economy Macroeconomics / Balance of Payments: Financial Account and Capital Account / Problem 9
Problem 9
What is the main reason the balance of payments must always equal zero?
A
Because any inflow in the current account is matched by an equal outflow in the financial account.
B
Because the financial account only records short-term transactions.
C
Because the current account includes all types of transactions.
D
Because the capital account is always positive.
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