The Balance of Payments Must Always Balance, Because

Multiple Choice

The balance of payments must always balance, because:

A) capital account surplus means the outflow of capital.
B) current account surpluses automatically generate transfer of assets to foreigners.
C) current account deficits automatically generate transfer of assets from foreigners.
D) current account deficits automatically generate transfer of assets to foreigners while current account surpluses automatically generate transfer of assets from foreigners.