If the Current Account Is in Deficit and the Capital

question 60

Multiple Choice

If the current account is in deficit and the capital account is zero,then

• A)the financial account must be in surplus.
• B)the balance of trade must be in surplus.
• C)the balance of payments must be in surplus.
• D)there is a capital outflow.
• E)the balance of services must be in surplus.

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Definitions:

Real Goods

Real goods refer to physical, tangible products and commodities that can be touched, used, and traded, in contrast to services or digital products.

Option Delta

The change in the stock price divided by the change in the call price.

Stock Price

The current price at which a share of a company's stock can be bought or sold in the market.

Call Price

The price at which a bond or other financial instrument can be redeemed by the issuer before its maturity.