A Country's Balance of Payments Is Sometimes Incorrectly Said to Be

Multiple Choice

A country's balance of payments is sometimes incorrectly said to be "in surplus." This usually refers to a situation where

A) total credits exceed total debits.
B) the government is increasing its holding of foreign-currency reserves.
C) the official financing account is also in surplus.
D) the official financing accounts show a decrease in the stocks of official reserves.
E) credits exceed debits on the capital account only.