6.4k views
2 votes
If there is a small surplus in the combined current account plus capital and financial account for a certain year, then to make the two accounts balance, there will be

User ROrlig
by
8.2k points

1 Answer

5 votes
To make the two account balance, there will be AN INCREASE IN OFFICIAL RESERVE HOLDINGS.
Official reserve holding refers to a country total trade able foreign currencies, gold reserves and special drawing rights. The official reserve holding is a sub division of the capital account and it is used to balance payment on a yearly basis by the central bank of the concerned nation.
User Chords
by
7.6k points