Which of the Following Is TRUE

question 45

Multiple Choice

Which of the following is TRUE?

• A) A country with a current account surplus is earning more from its exports than it spends on imports.
• B) A country could finance a current account deficit by using previously accumulated foreign wealth to pay for its imports.
• C) A country with a current account deficit must be increasing its net foreign debts by the amount of the deficit.
• D) We can describe the current account surplus as the difference between income and absorption.
• E) All of the above are true of current account balances.

---

Definitions:

Axillary

Relating to the area under the arm where it meets the shoulder, often referenced in medical and anatomical contexts.

Oral

Pertaining to the mouth or taken through or applied in the mouth, often used in the context of medications or narrations.

Rectal

Related to the rectum, the final section of the large intestine, terminating at the anus.

Pasteurization

A heat treatment process applied to food and drinks to kill harmful microorganisms and extend shelf life without significantly altering the taste or nutritional value.