Question

Assume that a country has a current-account surplus of Rs. 10,000 and a financial-account deficit of $12,000. Assume that the capital account and net errors and omissions are negligible

a. Does the country have a balance-of-payments deficit or surplus? b. What will happen to the country's official reserve account?

Answer 1

Explanation:

a) it should grow till 2025 after that it can be deficit. Therefore, I say deficit. b) idk, sorry