When a Country Realizes a Deficit on Its Current Account

question 25

Multiple Choice

When a country realizes a deficit on its current account:

• A) Its net foreign investment position becomes positive
• B) It becomes a net demander of funds from other countries
• C) It realizes an excess of imports over exports on goods and services
• D) It becomes a net supplier of funds to other countries

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Definitions:

Northerners

Residents or native individuals from the northern part of a country; in the context of the United States, it often refers to citizens of states that opposed slavery during the Civil War.

Confederate Government

The administration that governed the Confederate States of America, a collection of southern states that seceded from the United States from 1861 to 1865.

Social Divisions

Distinct categories within society that are differentiated by characteristics such as class, ethnicity, or religion, often leading to inequality or conflict.

European Intervention

Actions taken by European countries to influence the political, economic, or social affairs of other nations, often outside of Europe.