Current Account Balance Calculation

Steps:

• Identify current account components: balance of goods, services, primary income, and secondary income (given as zero).
• Retrieve values from table: assume goods balance (-$150M), services balance (+$80M), primary income balance (+$20M).
• Sum balances: -150 + 80 + 20 + 0 = -50 million.
• Conclude overall current account shows a $50 million deficit.

Why A is correct:

• Current account balance formula sums net goods, services, primary, and secondary income flows; here, totals -50 million, defining a deficit.

Why the others are wrong:

• B misadds components, ignoring services surplus to exaggerate deficit.
• C reverses sign, treating deficit as surplus.
• D likely confuses with capital account or total BoP, vastly overstating.

Final answer: A