The Current Account Records

question 54

Multiple Choice

The current account records

• A)last year's flows of funds into and out of the country
• B)current flows of imports and exports of goods and services, net income earned by U.S.residents from foreign assets, and net transfer payments
• C)current flows of imports and exports of goods only
• D)only net income earned by U.S.residents from foreign assets
• E)only current flows of imports and exports of goods and services and net transfer payments

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Definitions:

Balance Sheet

A financial statement at a given point in time that shows assets on one side and liabilities and net worth on the other side; because assets must equal liabilities plus net worth, the two sides of the statement must be in balance.

Net Worth

The total assets minus total external liabilities of an individual or a company, indicating their overall financial position.

Liabilities

Financial obligations or debts owed by a company or individual to others, which must be settled over time through the transfer of economic benefits.

Non-Interest-Bearing Reserve Deposits

Bank reserves held in a central bank that do not earn any interest for the commercial bank.