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A deficit balance of payments is measured by subtracting ...

A deficit balance of payments is measured by subtracting the debits from the credits in the

A.

Current account

B.

Current and capital accounts

C.

Current and escrow accounts

D.

Capital and escrow accounts

Correct answer is B

A balance of payments deficit means the country imports more goods, services, and capital than it exports. The current account + capital account make up the balance of payment account and when the imports exceeds the exports, it becomes a deficit balance of payment.