If the Current Account Balance Is -$100 Billion,net Interest =

question 39

Multiple Choice

If the current account balance is -$100 billion,net interest = $0,net transfers = $0,then

• A)there was an increase in net foreign assets.
• B)the country is loaning abroad.
• C)imports are greater than exports.
• D)exports are greater than imports.
• E)the capital and financial account balance must be +$100 billion.

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Definitions:

Entity

Any organization, institution, or being that has a distinct existence, legally recognized as capable of rights and duties.

Profit

The financial gain achieved when the revenues earned from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Personally Liable

The state of being legally responsible for one's actions on an individual basis, which can result in personal financial liability.

Partnership

A form of business conduct legally established among at least two partners with shared responsibilities and profit distribution.