Current Account Deficit Refers to Imports Being Greater Than Exports

question 41

True/False

Current account deficit refers to imports being greater than exports.

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Definitions:

Holding Cash

Maintaining a portion of one's assets in cash or cash equivalents to manage risk or for upcoming transactions.

Maturities

The dates when the principal amount of a debt or investment is due to be paid back or reaches its expiration.

Default Risk

Default risk is the likelihood that a borrower will be unable to make principal and interest payments on a debt, potentially leading to financial loss for the lender.

Marketability

The ease with which an asset or security can be sold or bought in the market without affecting its price.