The Change in U

question 43

Multiple Choice

The change in U.S. official reserves is equal to

• A) the current account balance minus the capital account balance.
• B) the current account balance plus the capital account balance.
• C) borrowing from abroad plus the current account deficit.
• D) foreign investment in the United States minus U.S. investment abroad.

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Definitions:

Composition

In mathematics, the composition of functions refers to the application of one function to the results of another.

Function

A relation or correspondence between two sets in which each element of the first set is paired with exactly one element of the second set, typically described by f(x).

Function

A relation between a set of inputs and allowable outputs, where each input is related to exactly one output.

Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.