Question

Which of the following statements is false?

A) A country runs a current account surplus if it sells more of its assets abroad than it buys
abroad.
B) If the current account is in surplus, the capital account must be in deficit. C) The overall sum of all the entries in the balance of payments must be zero.
D) A country runs a net export deficit if it imports more than it exports.

Answer 1

The false statement is that a country runs a current account surplus if it sells more of its assets abroad than it buys abroad.

Step-by-step explanation:

The false statement in the given options is A) A country runs a current account surplus if it sells more of its assets abroad than it buys abroad.

A current account surplus occurs when a country exports more goods and services than it imports, resulting in a positive balance of trade. It does not involve selling or buying assets. Therefore, statement A is false.