Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A) Current account balance = -(capital account balance).
• B) A country's balance on current account equals its balance on capital account.
• C) If the market for a nation's currency is in equilibrium, a capital account surplus necessarily means a current account surplus.
• D) Capital accounts and current accounts balances are determined by governments.

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Definitions:

Pure Competition

A market structure characterized by an extremely high level of competition, where there are many sellers offering standardized products.

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical, allowing for competition based on quality, price, and branding.

Goods Offered

The products made available to consumers in the market, including tangible items that satisfy needs or wants.

High Start-Up Costs

The significant initial investment required to establish a new business, which can include expenses related to research and development, manufacturing, marketing, and administrative infrastructure.