Concept:A current account deficit represents an excess of imports and income outflows over exports and income inflows.
Explanation:This shortfall in the current account needs to be financed somehow.
The capital account records foreign investment, loans, and other capital flows.
A surplus in the capital account brings in the foreign currency needed to cover the current account deficit.
The invisible account and visible account are both parts of the current account, not separate sources of finance.
Balancing the current account with itself would not solve a deficit in that same account.
National income account measures the total income of the country and does not directly finance trade deficits.
Therefore, the correct way to finance a short-term current account deficit is by balancing it with the capital account.
Answer:B. capital account.