A BoP deficit means that

the government's budget is in deficitCorrect answerYour answerimports of goods exceed exports of goodsCorrect answerYour answerautonomous payments exceed autonomous receiptsCorrect answerYour answerthe BoP no longer balances in the accountsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A deficit is in the autonomous items; accommodating items then close it, so the accounts still balance.

Worth noting

Imports exceeding exports of goods is only a trade deficit, one part of the picture.

Concept: BoP deficit
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsAutonomous and accommodating; BoP deficit

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Ten questions from Balance of Payments, at your own pace.

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Ten questions from Balance of Payments, at your own pace.

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A BoP deficit means that

Explanation