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U.S. Balance of Payments from 2009-2012


The US government had significant federal fiscal deficits in the 2009-2012 period. New Treasury bonds were issued; a significant percentage of them were purchased by foreign governments. Which of the following statements is consistent with that observation?


The United States must have had a trade surplus during those years, allowing them to earn foreign currency to buy the new government bonds.


The United States' current account must have been in surplus given this influx of foreign funds.


Both the current account and the capital/financial account of the United States would have had a deficit that was funded by the foreign savings.


The United States had a current account deficit. As a result, there was an in-flow of foreign savings, thus the United States had a surplus in its capital financial account.