Consider the following statements 1 A deficit in the current account must be settled ...........

Economic Affairs Public Finance and Debt Management

Consider the following statements.

1. A deficit in the current account must be settled by a surplus on the capital account.

2. A surplus in the current account must be matched by a deficit on the capital account.

Which of the statements mentioned above is/are correct?

Both 1 and 2

1 only

2 only

None of above

Both statements are correct.

Submit Error

economic affair