If the Current Account Is in Surplus and the Capital

question 74

Multiple Choice

If the current account is in surplus and the capital account is zero,then

• A) net exports must be positive.
• B) the balance of payments must be in surplus.
• C) the financial account must be in deficit.
• D) there is a capital inflow.

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Definitions:

Reverse Innovation

The process of taking innovations developed in emerging markets and repackaging them for developed markets.

Emerging Markets

Countries with social or business activity in the process of rapid growth and industrialization, often characterized by high investment potential.

Benefit Corporation

A type of legal structure for businesses that seeks to make a positive impact on society, workers, the community, and the environment in addition to profit.

Positive Outcome

A result or effect that is beneficial, desirable, or favorable in terms of meeting objectives or expectations.