The Current Account Balance Is Equal to

question 39

Multiple Choice

The current account balance is equal to

• A)Trade balance + services balance - capital account balance.
• B)Trade balance + services balance + capital account balance.
• C)Trade balance + unilateral transfers.
• D)Total payments made by residents of the United States to foreigners plus total payments made by foreigners to residents of the United States.

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Definitions:

General MacArthur

Douglas MacArthur, a prominent United States Army general known for his command roles during World War II and the Korean War.

Limited War

A conflict with restricted objectives, scope, or means, such as limiting the geographical area of the fight or avoiding the use of certain weapons.

Korean War

A conflict between North and South Korea from 1950 to 1953, in which North Korea, supported by China and the Soviet Union, and South Korea, supported by the United Nations and primarily the USA, fought to a stalemate.

New Look

A defense strategy under President Eisenhower that emphasized the strategic use of nuclear weapons while reducing conventional military forces.