If the Current Account Is in Deficit and the Capital

question 111

Multiple Choice

If the current account is in deficit and the capital and financial account is also in deficit, then the official settlements account balance is

• A)negative.
• B)positive.
• C)probably close to zero, but could be either negative or positive.
• D)zero.
• E)equal to the sum of the current account and the capital account.

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Definitions:

Variable Interest Rate

An interest rate that can fluctuate over time based on underlying benchmarks or indexes.

Accrued Interest

Interest that has been incurred but not yet paid, typically referring to the interest accumulating on a bond or loan between payment periods.

Equivalent Payment

A payment amount that equates the present value of two or more different payments.

Annum

A term denoting a year or a yearly period, often used in financial contexts to refer to annual amounts or periods.