Why, in this question, is this a capital account surplus vs a current account surplus? What makes this particular problem Capital?
In 20X5, Carthage's merchandise imports exceeded the value of its merchandise exports. In this case, Carthage would most likely have which of the following?
Current account surplus.
Capital account surplus.
Balance of trade surplus.
If a country is running a current account deficit, it must have an inflow of foreign capital, creating a surplus in the capital account.
(Study Session 5, Module 17.2, LOS 17.h)