If Net Interest and Net Transfers Are Zero, and a Countryʹs

question 388

Multiple Choice

If net interest and net transfers are zero, and a countryʹs exports exceed its imports, the country definitely has .

• A) a capital and financial account surplus
• B) a current account surplus
• C) an official settlements account surplus
• D) a current account deficit

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Definitions:

Year-end Consolidation

The process of combining and integrating all financial statements and data of a corporation and its subsidiaries at the end of the fiscal year to produce consolidated financial statements.

Cost of Goods Sold

The financial charges directly linked to the fabrication of products sold by a company, involving both materials and labor input.

Net Income

The profit a company retains after all expenses and taxes have been removed from its revenue.

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.