The Table Contains Balance of Payments Data for the Hypothetical

question 237

Multiple Choice

The table contains balance of payments data for the hypothetical nation Econland . All figures are in billions of dollars. There was a

• A)trade deficit but a current account surplus.
• B)trade surplus but a current account deficit.
• C)trade surplus and a current account surplus.
• D)trade deficit and a current account deficit.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the market.

Cash

Currency or its equivalents that a company holds and can use to conduct transactions, considered the most liquid form of asset.

Face Value

The nominal or dollar value printed on a stock, bond, or other financial instrument, representing its value at issuance.

Interest

The cost of using borrowed funds, or the return on invested funds, typically expressed as a percentage rate over a period of time.