A Surplus in the Current Account Implies

question 149

Multiple Choice

A surplus in the current account implies

• A) a surplus in the capital account.
• B) a deficit in the capital account.
• C) a balanced capital account.
• D) there is an excess supply in the foreign currency market.

---

Definitions:

Covariance

A measure that indicates the degree to which two variables change together, showing if increases in one variable tend to be associated with increases or decreases in the other.

Marginal Probability

The probability of an event occurring, taken in isolation, without consideration of any other related events.

Car Sales

The number of automobiles sold within a specific period, an indicator of the automotive industry's health and consumer demand.

Conditional Probabilities

The probability of an event occurring given that another event has already occurred, reflecting how the likelihood of the event is affected by the knowledge of another outcome.