A balance of payments deficit occurs when _____.

A) the net inflow of money from abroad exceeds the net outflows of money to other countries
B) imports exceed exports
C) the net outflow of money from a country exceeds the net inflow of money from abroad
D) exports exceed imports

Balance of Payments Deficit

A situation where the total of the country's imports and its external payments exceeds the total of its exports and external receipts.

Net Inflow

The measurement of the total amount of money being transferred into a particular entity, sector, or system, minus the amount leaving it.

Net Outflow

The total amount of money leaving a country or economy as a result of outflows exceeding inflows, often related to international trade, investments, and financial transactions.