Balance of payments always balances in an accounting sense.TrueFalseCan't sayVaries between countries (2024)

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A

True

B

False

D

Varies between countries

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Solution

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The balance of payment of a country must always be in equilibrium, a surplus on one account must be met with a deficit of equal magnitude on the other. Thus, the sum of the capital account and the current account must always be zero leading to a balance in the BOP in accounting sense.

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Balance of payments always balances in an accounting sense.TrueFalseCan't sayVaries between countries (2024)
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