A country runs a deficit in its current account if:
a. ?it follows the double-entry bookkeeping requirement that total debits must equal total credits.
b. ?foreign currency received from exports and transfers exceeds the foreign exchange needed to pay for imports and to make unilateral transfers.
c. ?it consumes less goods and services compared to what it produces.
d. ?foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers.
e. ?the interest and dividends earned by its residents on foreign assets exceed the interest and dividends earned by foreigners who invest in domestic assets.
Answer: d. ?foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers.
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