The Following Balance-Of-Payments Data Are for the Hypothetical Nation of Zabella

Multiple Choice

The following balance-of-payments data are for the hypothetical nation of Zabella. All figures are in billions of dollars.

$\begin{array} { | l | c | } \hline \text { Merchandise exports } & + \$ 80 \\\hline \text { Merchandise imports } & - 70 \\\hline \text { Service exports } & + 20 \\\hline \text { Service imports } & - 25 \\\hline \text { Investment income } & + 5 \\\hline \text { Transfers } & - 5 \\\hline \text { Capital and financial inflows } & + 13 \\\hline \begin{array} { l } \text { Capital and financial } \\\text { outflows }\end{array} & - 23 \\\hline \text { Changes in official reserves } & + 5 \\\hline\end{array}$
-The changes in official reserves account indicates that Zabella:

A) added $5 billion to its stock of foreign currencies through sales of Zabellan dollars
B) imported more merchandise than it exported
C) reduced its stock of foreign currencies by $5 billion through purchases of Zabellan dollars
D) experienced a balance-of-payments surplus
E) exported more merchandise than it imported