An economy’s current account of the balance of payments is in deficit. However, the country has trade surpluses in both goods and services.
It can be concluded that
the domestic currency's exchange rate must be depreciating.
the net primary income (net investment income) balance must be negative.
the combined net primary and net secondary income balance must be negative.
the value of goods exported must be less than the value of services imported.
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.