If the Government Budget Is Balanced, and Saving Is Greater

question 24

Multiple Choice

If the government budget is balanced, and saving is greater than investment, then the

• A)current account must be in surplus.
• B)current account must be in deficit.
• C)current account balance must be zero.
• D)capital account must be in surplus.

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Definitions:

LLP

Stands for Limited Liability Partnership, a legal structure that offers some of the benefits of a partnership while limiting personal liability of the partners.

Asset Distribution

The process of allocating assets, either during a person’s life or after death, according to the person's wishes or legal agreements.

Profitable

Describes a situation, venture, or entity that generates more revenue than the expenses incurred, resulting in financial gain.

Capital Account

In finance, a record of the financial transactions and investments between residents of a country and the rest of the world.