A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2021 · Q211 Mark
Why is it that a country's balance of payments must always balance?
AExchange rate changes will correct any deficit or surplus.
BOne country's deficit is balanced by another country's surplus.
CThe current account is balanced by the capital and financial accounts.
DThe government must act to correct any disequilibrium.
✓ Correct answer
C: The current account is balanced by the capital and financial accounts.
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