In the balance of payments accounting system, if a country has a current account deficit, it must have a capital account surplus. has a capital account deficit, it must have a current account deficit has a current account surplus, it must have a capital account surplus has a capital account surplus, it must have a capital account surplus

The correct answer is: has a current account deficit, it must have a capital account surplus.

Explanation:

It is an accounting record of all economic transactions of residents of a country with the rest of the world, which occur in a given period of time, usually one year. That is, it shows the total payments made abroad and the total income received from abroad. It records both the flows of real resources (goods and services) and the flows of financial resources (capital movements).

The balance of payments comprises two major items: the current account and the capital account.

The current account summarizes all transactions for exports and imports of goods and services, or, in other words, all visible and invisible trade. The capital account includes all transactions that are not included in the current account, the most important being capital transfers and purchases and sales of gold and currencies.

Since the balance of payments is subject to the double entry principle as any accounting record, it must always be in balance or with zero balance. However, this does not imply that the current or capital account is necessarily balanced.

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