Exports of goods are $500 billion, imports of goods $600 billion, net services $+80 billion, net income $−10 billion and net transfers $+50 billion. The current account shows

a deficit of $100 billionCorrect answerYour answera surplus of $20 billionCorrect answerYour answera deficit of $20 billionCorrect answerYour answera surplus of $130 billionCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Balance of trade = 500 − 600 = −100.
Current account = −100 + 80 − 10 + 50 = $+20 billion: a surplus.

Worth noting

A $100 billion deficit is only the trade balance; the invisibles more than cover it.

Concept: Current account from its parts
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsThe current account

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

Exports of goods are $500 billion, imports of goods $600 billion, net services $+80 billion, net income $−10 billion and net transfers $+50 billion. The current account shows

Explanation