Which of the following statements regarding the balance of payments is accurate?
- The capital account reflects the flow of financial assets between countries.
- A deficit in the current account must always be accompanied by a surplus in the capital account.
- The financial account includes direct investments, portfolio investments, and reserve assets.
- The balance of payments must always balance; hence, any deficit or surplus must be adjusted through capital movements.
1
Only 1 and 2
2
Only 3
3
Only 1, 3, and 4
4
Only 2 and 4
5
Question Not Attempted