If a Country Has a Current Account Deficit, Then the Country

question 18

Multiple Choice

If a country has a current account deficit, then the country must also have

• A) a merchandise trade deficit.
• B) a financial or capital account surplus.
• C) a financial or capital account deficit.
• D) an increase in its net international investment position.

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Definitions:

Compounded Monthly

Interest on an investment or loan is calculated and compounded every month.

Maximize Benefits

The act of optimizing or getting the most advantageous results from a certain situation or set of resources.

Compounded Annually

Interest that is computed once per year and added to the account's total.

Consistent Annual Contributions

Regular annual payments or deposits made into a financial account or investment to grow savings over time.