what-is-the-main-reason-the-balance-of-payments-must-always-equal-zero

Question

What is the main reason the balance of payments must always equal zero?

Accepted Answer

Because any inflow in the current account is matched by an equal outflow in the financial account.

Answer

Because the financial account only records short-term transactions.

Answer

Because the current account includes all types of transactions.

Answer

Because the capital account is always positive.