China Is Currently Experiencing a Surplus in Its Current Account

question 64

Multiple Choice

China is currently experiencing a surplus in its current account and its capital/financial accounts. Which of the following is NOT a contributing factor for this unusual situation?

• A) The exceptional growth in the Chinese economy contributes to the current account surplus.
• B) The positive prospects for China's continued growth contribute to the capital/financial account surplus.
• C) China's inevitable acquisition of Taiwan is driving the market for Chinese investment.
• D) All of the above are contributing factors for China's twin surpluses.

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Definitions:

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Organizations that collect funds from members and donate those funds to campaign for or against political candidates, legislation, or policies.

Legitimate Right

A recognized or sanctioned entitlement or authority within a social or legal framework.

Wield Power

To have control or authority over others, often used in the context of politics, leadership, or social influence.

Authority

The power or right to give orders, make decisions, and enforce obedience.