The Real Current Account Balance Equals

question 2

Multiple Choice

The real current account balance equals

• A)the net international investment position.
• B)the trade balance.
• C)the trade balance plus net real asset income from abroad.
• D)all of the above.

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Definitions:

Effective Annual Rate

The interest rate on an investment or loan, which is annualized by considering the effect of compounding over a given period.

Amortized Mortgage

A loan for which the principal and interest are paid down through regular payments over the loan's term, leading to full repayment by the end.

Nominal Interest Rate

The rate of interest before any adjustment for inflation; the stated or face interest rate on a loan or investment.

Sales Growth

The increase in sales over a specific period, indicating the performance and scaling efforts of a business.