Suppose the Current Account of a Country Is Initially in Balance

Multiple Choice

Suppose the current account of a country is initially in balance. A new transaction occurs so that the current account is now in surplus. Official reserve balance is maintained before and after the transaction occurs. From this, we know that

A) the balance of trade is now in surplus.
B) the balance of goods and services is now in surplus.
C) the financial account is now in deficit.
D) the government must make official reserve transactions.