The Current Account

question 114

Multiple Choice

The current account

• A) keeps track of all spending flows on imports and exports of goods and services.
• B) keeps track of all spending flows on imports and exports of goods and services and assets.
• C) is an ongoing balance of what is owed a nation by foreigners.
• D) is an ongoing balance of a nation's foreign debts.

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Definitions:

Rival Consumption

A situation where the consumption of a good by one individual prevents simultaneous consumption by other individuals.

Excludable

A characteristic of a good or service where it's possible to prevent individuals who have not paid for it from having access.

Television Signal

The electronic waves transmitted from a broadcast station that carry audio and visual information to televisions.

Nonrival Consumption

A characteristic of goods where one person's consumption does not reduce availability or enjoyment of the good for others.