Which of the Following Statements Is Most Accurate About the U.S

question 244

Multiple Choice

Which of the following statements is most accurate about the U.S. current account since the Great Recession (the period covering 2009-2015) ?

• A) The current account has remained the same in absolute terms, but fallen as a percentage of GDP.
• B) The current account has gone from a deficit to a surplus.
• C) The current account deficit has grown in absolute terms, but remained relatively constant as a percentage of GDP.
• D) The current account deficit has grown in both absolute terms, and as a percentage of GDP.

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Definitions:

Percent

A term used to describe one hundredth of a whole; a way to express fractions, amounts, or changes in quantities in terms of hundredths.

Reserve Requirement

A regulation that sets the minimum amount of reserves a bank must hold against deposits, used as a tool to control banking stability and money supply.

Deposits

Money placed into a financial institution for safekeeping, which can earn interest over time.

Loans

Funds borrowed that are expected to be paid back with interest.