What is the relationship between the current account and the capital account in the balance of payments? Select one: a. The current account shows all income and expenditure and the capital account shows investment and how it is funded. b. The capital account shows how a current account deficit is funded or a surplus is disbursed. c. There is no relationship between them as they measure different things. d. The current account balance is the difference between exports and imports and the capital account balance shows net foreign income.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 6SCQ: The GDP for the United States is 18,036 billion and its current account balance is 484 billion. What...
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What is the relationship between the current account and the capital account in the balance of payments?
Select one:
a.
The current account shows all income and expenditure and the capital account shows investment and how it is funded.
b.
The capital account shows how a current account deficit is funded or a surplus is disbursed.
c.
There is no relationship between them as they measure different things.
d.
The current account balance is the difference between exports and imports and the capital account balance shows net foreign income.
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