If Econia Increases Its Imports, Which of the Following Will

question 30

Multiple Choice

If Econia increases its imports, which of the following will happen to its current account balance?

• A) The inflow of funds will raise the balance.
• B) The outflow of goods will lower the balance.
• C) The outflow of funds will lower the balance.
• D) The inflow of goods will raise the balance.

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Definitions:

Traveler's

Pertaining to, designed for, or used by people who are traveling, as in "traveler's checks" or "traveler's insurance".

Counter Check

a temporary bank check that allows the holder to draw funds from an individual account.

Withdraw Money

involves removing cash from a bank account, either through an ATM, bank teller, or other banking procedures.

Pegboard

A board, typically perforated with a grid of holes, used for organizing tools or for games, by fitting pegs or hooks into the holes.