Question

which of the following statements is true about the balance of payments account? choose 1 answer. a the sum of all credit entries is greater than the sum of all debit entries b only the movement of financial assets is included in the balance of payments c only imports and exports are included in the balance of payments d the sum of all debit entries is greater than the sum of all credit entries e a surplus in the financial account means there is a deficit in the current account

Explanation:

The balance - of - payments account is a double - entry accounting system. In a well - functioning system, the sum of all debit entries equals the sum of all credit entries. The balance of payments includes both current account (trade in goods and services, etc.) and financial account (movement of financial assets) transactions. A surplus in the financial account implies a deficit in the current account to maintain the overall balance.

Answer:

E. A surplus in the financial account means there is a deficit in the current account