Start learning →

Under the broad BoP identity, a current account surplus is balanced by what?

AA larger trade surplus
BA fall in all exports
CA capital account deficit
DA rise in tariff revenue
Answer & Solution
Correct answer: C. A capital account deficit
The identity makes total accounts sum to zero, so a current surplus mirrors a capital deficit of the same size.
Practise this question with Quill — CA Foundation →

Keep practising International Trade

Browse all International Trade questions for CA Foundation, or explore more Business Economics topics.

Start a International Trade lesson →
Related questions