Which of the Following Is True of a Current Account

question 62

Multiple Choice

Which of the following is true of a current account surplus?

• A) A country that is running a current account surplus will have negative net exports.
• B) A current account surplus is consistent with domestic spending being in excess of domestic production.
• C) A current account surplus means that a country is also running a net surplus in its financial account.
• D) A country can have a current account surplus only if it exports more services as compared to goods.
• E) A country that is running a current account surplus buys more bonds from the rest of the world as compared to what it sells.

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Definitions:

Total Costs

The sum of all costs incurred by a business in producing goods or services, including both fixed and variable costs.

Units

A measure of quantity used to quantify the amount of production output, inventory, or sales.

Variable Costs

Expenses that change in proportion to the production or sales figures.

Per Unit

A measure or cost expressed per single item or quantity of a product or service.