Balance of payments



Hi,

I'm an A-level student in the UK. We have been told that the
balance-of -payments always balances; the usual deficit in the current
account is always balanced by a surplus in the financial and capital
account. I've asked my economics teacher why, but she did not really give me
a satisfactory answer...she kind of just restatated what ive said above but
did not explain.

Sorry if this seems really basic, but after searching the web for some time,
I still have not found a simple answer.

Thanks,

Curt


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