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A deficit balance of payments is measured by subtracting the debits from the credits in...

Economics
JAMB 2012

A deficit balance of payments is measured by subtracting the debits from the credits in the

  • A. current account
  • B. current and capital accounts
  • C. current and escrow accounts
  • D. capital and escrow accounts
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Correct Answer: Option B
Explanation

A balance of payments deficit means the country imports more goods, services, and capital than it exports. The current account + capital account make up the balance of payment account and when the imports exceeds the exports, it becomes a deficit balance of payment.


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