Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A) Current account balance = -(capital account balance).
• B) A country's balance on current account equals its balance on capital account.
• C) If the market for a nation's currency is in equilibrium, a capital account surplus necessarily means a current account surplus.
• D) Capital accounts and current accounts balances are determined by governments.

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Definitions:

Dominant Strategy

A strategy in game theory that yields the best outcome for a player, regardless of the strategies chosen by other players.

Dominant Strategy

A strategy in game theory that is the best for a player to follow, regardless of what the opponent does.

Maximin Strategy

A decision-making rule used in uncertain situations, aiming to select the option with the least possible loss or the maximum of the minimum gains.

Dominant Strategy

A strategy that is the best for a player in a game, regardless of the strategies chosen by other players.