A Current Account Surplus Exists If the Balance on the

question 166

Multiple Choice

A current account surplus exists if the balance on the

• A) capital account is zero.
• B) capital account is positive.
• C) current account is negative.
• D) current account is positive.

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Definitions:

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Tax-Deferred Account

A savings account or investment option where taxes on the principal and/or earnings are delayed until the investor withdraws the funds.

Taxable Account

An investment account in which the earnings are subject to income tax.

Compounded Quarterly

The process of adding interest to the principal sum of a loan or deposit, calculated every three months.