NABTEB Economics 2024 Objective — Question 47

Question 47 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2024 Objective paper, with the correct answer and a full explanation.

Short-term deficits in the current account of the balance of payments can be financed by balancing with the

A. A. Invisible account
B. B. capital accountCorrect
C. C. visible account
D. D. national income account

Explanation

The short term deficits in the current account of a country's balance of payment can be defined by balancing with that of the capital account. The current account shows the total income and expenditure of a country in a particular year while the capital account shows the movement of money and other credit facilities to and from a country.

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