If Net Interest and Net Transfers Are Zero, and a Country's

question 326

Multiple Choice

If net interest and net transfers are zero, and a country's exports exceed its imports, the country definitely has

• A) a current account surplus.
• B) a current account deficit.
• C) a capital and financial account surplus.
• D) an official settlements account surplus.

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Definitions:

Subchapter S Stock

Refers to shares of corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

Capital Contributions

The funds or resources contributed by owners or shareholders for the use in furthering the business or enterprise.

Shareholder's Basis

The amount of a shareholder's investment in stock of a corporation, adjusted for various tax-related items.

Corporate Debt

Financial obligations owed by a corporation, typically in the form of bonds, loans, or other types of securities.