A capital account surplus might be expected to cause a current account deficit because the associated ?

The Balance of Payments 20/05/2021

A. capital outflow would cause the nation’s currency to depreciate contributing to a trade deficit
B. capital inflow would cause the nation’s currency to depreciate contributing to a trade deficit
C. capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
D. capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit

Related Mcqs:

    All of the following are credit items in the balance of payments except ?
    A. investment inflows B. merchandise exports C. payments for American services to foreigners D. private gives to foreign residents...
    Debit entries on the balance of payments are the entries that would ?
    A. mean a loss of foreign exchange B. bring foreign exchange into the country C. indicate a surplus exist D. exist at the bottom line after all accounts are totaled...
    Current account deficit are offset by______________?
    A. merchandise trade deficits B. merchandise trade surpluses C. capital/financial account surpluses D. capital/financial account deficits...
    Credit (+) items in the balance of payments correspond to anything that ?
    A. involves receipts from foreigners B. involves payments to foreigners C. increases the domestic money supply D. decreases the demand for foreign exchange...
    When all of the debit or credit items in the balance of payments are combined ?
    A. merchandise imports equal merchandise exports B. capital imports equal capital exports C. services exports equal services imports D. the total surplus or deficit equals zero...

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