The Account That Records Changes in the U

question 126

Multiple Choice

The account that records changes in the U.S. government's holdings of foreign currency is the

• A) U.S. official reserves account.
• B) official settlements account.
• C) capital account.
• D) current account.

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Definitions:

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, indicating how much tax will be paid on any additional income earned.

Municipal Bond

A debt security issued by a state, municipality, or county to finance its capital expenditures, usually exempt from federal taxes and, in some cases, state and local taxes.

Corporate Bond

A type of debt security issued by a corporation to raise funds from investors, who are owed repayment of the loan plus interest.

Futures Contract

A Futures Contract is a legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.