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:

Implied-in-Fact Contract

An implied-in-fact contract is an agreement that is not expressed in words but is inferred from the actions or conduct of the parties involved.

Original Agreement

The initial contract or understanding reached between parties, before any amendments, modifications, or terminations.

Automatically Terminated

Refers to a condition in contracts or agreements where certain actions or failures to act result in the termination of the agreement without the need for further legal action.

Reasonable Amount

A quantity or level of something that is considered fair, appropriate, and within legal or prudent limits under the circumstances.