If China Has a Current Account Surplus, It Must Have

question 22

Multiple Choice

If China has a current account surplus, it must have

• A) a capital account surplus.
• B) a capital account deficit.
• C) a decrease in foreign aid.
• D) capital inflows.

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Definitions:

Standard Deviation

A measure of the dispersion or variability in a set of values, often used to quantify the risk associated with a particular investment.

Systematic Risk

The underlying threat to the entire market or a specific market sector that cannot be alleviated by spreading out investments.

Business Cycle

Repetitive cycles of recession and recovery.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage of the total amount loaned or invested.