Question

Since the sum of the current account and the capital account must always be zero, abalance-of-payments disequilibrium--that is, a non-zero balance of payments--is impossible.

true, false, or partly true and partly false; indicate which is the case and give your reasons

Answer 1

Ans True

Description:In economic term Bop consist two parts current account and capital account.current account deal with all payment in cash while capital account deal with source of that cash.sum of cuurent account and capital account will always reflect in the balance sheet zero because if there is any payment in cash it must have source of incoming also so its automatically balance ;without source no payment can come .If in case any surplus or deficit of payment  can occur in current account it must be equal or cancel with equal surplus of deficit in capital account.