If the Current Account Balance Is -$100 Billion, the Capital

question 5

Multiple Choice

If the current account balance is -$100 billion, the capital account balance is $80 billion, then the
Official settlements account balance is

• A)0.
• B)$180 billion.
• C)-$20 billion.
• D)$20 billion.
• E)-$180 billion.

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Definitions:

Remaining Life

The estimated duration for which an asset is expected to be economically useful or operational.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted for the investor's share of the investee’s profits or losses.

Retained Earnings

The portion of a company's profit that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay down debt.

Intra-Entity Transfer

Transactions involving assets, services, or funds between divisions or units within the same company, impacting financial statements when aggregated.