The Correct Calculation for the Current Account Is Given by ________

question 59

Multiple Choice

The correct calculation for the current account is given by ________.

• A) Exports + Net factor payments from abroad + Net domestic transfers
• B) Net exports + Net domestic factor payments + Net domestic transfers
• C) Net exports + Net factor payments from abroad + Net transfers from abroad
• D) Net exports + Net domestic factor payments + Net transfers from abroad

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Definitions:

Basis

In finance, the difference between the spot price of an asset and the future price, or the inverse, depending on the context.

Long Hedger

A long hedger is an investor or company that enters into a hedge transaction to protect against a rise in the price of an asset in the future.

Short Hedger

A short hedger is an investor or trader who enters into contracts to sell an asset in the future to hedge against the risk of falling prices.

Treasury Bond Futures

Contractual agreements to buy or sell a specified amount of U.S. Treasury bonds at a future date and price.