If a Country Runs a Deficit in Its Current Account

question 155

Multiple Choice

If a country runs a deficit in its current account, it is because

• A)exports exceed imports
• B)imports exceed exports
• C)net unilateral transfers are negative
• D)foreign currency received from exports and transfers exceeds the foreign exchange needed to pay for imports and to make unilateral transfers
• E)foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers

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Definitions:

Limbs

The appendages of the human or animal body used for movement, such as arms and legs.

Childhood Obesity

A medical condition wherein a child is significantly overweight for his or her age and height, leading to potential health risks and complications.

Rapid

Moving or happening quickly or in a short time span; characterized by speed.

Weight Gain

An increase in body weight, which can result from muscle mass increment, fat deposits, fluid retention, or other factors.