Economics · Balance of Payments
Suppose a country runs a persistent trade deficit in its current account, but simultaneously experiences matching high capital inflows from foreign direct investments. In accounting terms, what will be the ultimate status of its overall Balance of Payments (BoP)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Unilaterally neutralized
- 2Always in deficit
- 3Always in surplus
- 4Balanced✓
Correct answer
Balanced
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