If the Current Account Balance Shows a Surplus,and the Capital

question 73

Multiple Choice

If the current account balance shows a surplus,and the capital account also shows a surplus,then the official reserve transactions balance

• A) must be positive.
• B) must be negative.
• C) must be zero.
• D) can either be positive, negative, or zero.

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Definitions:

Perfectly Competitive

A market structure characterized by many buyers and sellers, where no single buyer or seller can influence the price of a product.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.

Market Price

The current price at which a good or service can be bought or sold in a market.

Total Cost

The sum of all costs, fixed and variable, associated with the production and sale of a good or service.