asked 220k views
3 votes
The settling of any net deficit in the combined current, and capital and financial accounts is done with

asked
User Klaujesi
by
8.2k points

1 Answer

3 votes

Answer: official reserves

Step-by-step explanation:

The official reserve account is simply part of capital account which has to do with securities and foreign currency that are being held by the central bank of a particular country and which are used to balance payments yearly.

It should be noted that when there's trade surplus, there'll be increase in reserves and when there is a deficit in trade, there'll be decrease in reserves.

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.