If the Current Account Has a Negative Balance of $100

question 400

Multiple Choice

If the current account has a negative balance of $100 and the capital account has a positive balance of $80, there will be _ _ in official reserves of _ _.

• A) an increase; $20
• B) an increase; $180
• C) a decrease; $20
• D) a decrease; $180

---

Definitions:

Enron

was a U.S.-based energy company that collapsed in 2001 due to one of the largest accounting fraud scandals in history.

Financial Deregulation

The process of removing or reducing government restrictions on financial markets and institutions, often with the intent to increase efficiency, competitiveness, and innovation in the financial sector.

European Banks

Financial institutions based in Europe, playing key roles in the global financial system through lending, investment, and other financial services.

Asian Nations

Refers to the countries located on the Asian continent, characterized by diverse cultures, languages, and economies.