If the USFaces a Balance-Of-Payments Deficit on the Current Account, It Must

question 67

Multiple Choice

If the U.S.faces a balance-of-payments deficit on the current account, it must run a surplus on

• A) the official settlements account.
• B) the capital and financial account.
• C) either the official settlements account or the capital and financial account.
• D) both the official settlements account and the capital account.

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Definitions:

Smaller Group

A subset of a larger population or collection, typically characterized by fewer members or lesser size.

Parity Ratio

A metric often used in agriculture and economics to compare the relative value of one commodity or currency to another, based on a standard or base period.

Farmers

Individuals or entities engaged in the activity of agriculture, aiming at producing food and other crops.

Agricultural Subsidies

Government financial assistance to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.