If the Current Account Is in Surplus and the Capital

question 124

Multiple Choice

If the current account is in surplus and the capital and financial account is also in surplus, 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:

Schema

A concept or framework that organizes and interprets information.

Ambiguous Sensations

Feelings or perceptions that are open to more than one interpretation and are not easily categorized.

Masking Stimulus

A stimulus used to cover or obscure another stimulus, making it difficult or impossible for an individual to perceive the original stimulus.

Weber's Law

A principle stating that the smallest change in a stimulus that can be detected is a constant proportion of the stimulus level.