The current balance shows the balance for the trade in goods and services combined

If a foreign citizen places some money in a deposit in the UK, the accounts regard this as a credit.

If the government’s reserves of foreign currencies increase, then there is a minus sign by this item.

Allowing for errors and omissions the accounts always balance.

Borrowing from abroad must have been equal to the trade deficit

Either investment must have exceeded saving, or government spending exceeded taxes (net of transfers and subsidies), or both.

The country’s debt to foreign countries must have grown as a percentage of GDP.

There must have been a surplus on the capital and financing account.

Both 1 and 2

1 only

2 only

Neither 1 nor 2

A fall in incomes in the US.

News which suggests that prospects for UK firms are improving.

A rise in interest rates in the UK.

An expected rise in the value of sterling.

A fixed exchange rate regime.

An adjustable peg exchange rate regime.

A managed float routine.

A floating exchange rate regime