Which of the Following Is a Surplus Item in the U.S

question 152

Multiple Choice

Which of the following is a surplus item in the U.S. current account?

• A) The U.S. government reduces the tariff rates on some imported goods.
• B) IBM pays dividends to British shareholders.
• C) Finn vodka becomes more popular in the United States.
• D) The U.S. government cuts back on military personnel stationed in S. Korea.

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Definitions:

Supply of Money

The total value of money available in an economy at a specific time, including cash, coins, and balances in bank accounts.

Tight Monetary Policy

A monetary policy strategy used by central banks to decrease the money supply and increase interest rates to control inflation and stabilize the currency.

Net Exports

The value of a country's total exports minus the value of its total imports. It is a component of a country’s GDP.

Federal Reserve System

The main banking authority in the United States, tasked with setting monetary policy, overseeing banks, ensuring the financial system's stability, and offering financial services.