Suppose That There Is a Current Account Deficit of $255

question 297

Multiple Choice

Suppose that there is a current account deficit of $255 billion and a capital account surplus of $245 billion. It may be concluded that the

• A) overall balance of payments is +10.
• B) overall balance of payments is -10.
• C) official reserve transaction account balance is +10.
• D) official reserve transaction account balance is -10.

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Definitions:

Liability

The legal responsibility for one's actions or inaction, which may result in financial compensation or legal penalties.

Declaration of Value

An official statement indicating the market value of property or goods, often required for insurance purposes or in the context of shipping and customs.

Watches

Portable timepieces designed to be worn or carried, allowing the user to keep track of time.

Warehouse

A large building where raw materials or manufactured goods may be stored before their distribution for sale.