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:

Propagation Delay

The time it takes for a signal to travel from one point to another in a network, affecting the overall communication speed.

Radio

A technology that uses radio waves to transmit information, such as sound, by modulating properties of electromagnetic energy waves transmitted through space.

Satellite

A man-made object that is launched to circle around the earth or another celestial body, used for gathering data or for communication purposes.

Microwave

An electromagnetic wave with a wavelength shorter than that of a normal radio wave but longer than those of infrared radiation, commonly used in microwave ovens to heat food.