A deficit balance of payments is measured by subtracting the debits from the credits in the

  • A current account
  • B current and capital accounts
  • C current and escrow accounts
  • D capital and escrow accounts

The correct answer is B. current and capital accounts

A balance of payments deficit means the country imports more goods, services, and capital than it exports. The current account + capital account make up the balance of payment account and when the imports exceeds the exports, it becomes a deficit balance of payment.

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