If a Country Runs a Deficit in Its Current Account

Multiple Choice

If a country runs a deficit in its current account, it is because

A) exports exceed imports
B) imports exceed exports
C) net unilateral transfers are negative
D) foreign currency received from exports and transfers exceeds the foreign exchange needed to pay for imports and to make unilateral transfers
E) foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers