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Questions and Answers
What are the main components of the balance of payments?
What are the main components of the balance of payments?
The main components of the balance of payments are the current account, capital account, and financial account.
How does a surplus in the current account affect the balance of payments?
How does a surplus in the current account affect the balance of payments?
A surplus in the current account leads to an overall surplus in the balance of payments.
What impact does a deficit in the financial account have on the balance of payments?
What impact does a deficit in the financial account have on the balance of payments?
A deficit in the financial account contributes to an overall deficit in the balance of payments.
