Suppose the balance on the current account is +$100 billion and the balance on the capital account is −$1 billion. The balance on the financial account is

A) +$101 billion.
B) −$100 billion.
C) −$99 billion.
D) −$101 billion.

Current Account

The component of a country's balance of payments that records the value of exports and imports of goods and services, as well as international transfers of capital.

Capital Account

It reflects the net change in assets and liabilities from transactions in foreign investments and loans, indicating a country's financial position with the rest of the world.

Financial Account

A component of a country’s balance of payments that records transactions of foreign investment and domestic investment abroad, reflecting changes in ownership of international assets.