If the Current Account Is in Surplus and the Capital

question 93

Multiple Choice

If the current account is in surplus and the capital and financial account is also in surplus, then the official settlements account balance is

• A)negative.
• B)equal to the sum of the current account and the capital account.
• C)zero.
• D)probably close to zero, but could be either negative or positive.
• E)positive.

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Definitions:

Economic Depression

A long-term downturn in economic activity characterized by high unemployment, low consumer spending, and a decline in industrial output.

Staggering

Astonishing or deeply shocking in scale, magnitude, or degree.

Suffer

To experience or be subjected to something bad or unpleasant.

Depression of The 1890s

A severe economic crisis that struck the United States in the early 1890s, characterized by a significant downturn in the economy, leading to high unemployment and financial instability.