Question

An economy has a trade surplus of 25 billion dollars and an overall current account deficit of 47 billion dollars. What will be the balance of invisibles for this economy?

• A. A surplus of 72 billion dollars
• B. A surplus of 22 billion dollars
• C. A deficit of 22 billion dollars
• D. A deficit of 72 billion dollars

Answer 1

The Correct Option is C

The balance of invisibles is calculated as the current account deficit minus the trade surplus, resulting in a deficit of 22 billion dollars (47 - 25).