Current Account Surpluses Are Offset by

question 6

Multiple Choice

Current account surpluses are offset by

• A)the liquidity balances.
• B)capital account deficits.
• C)unilateral transfers.
• D)balance of trade surpluses.

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Definitions:

Fair Value Option

An accounting option that allows companies to record certain financial assets and liabilities at their fair value, reflecting current market conditions.

Equity Method Investment

An accounting approach used for recording investments in subsidiary companies where the investor has significant influence but not full control.

Acquisition Method

A set of accounting procedures used for incorporating the financial records of a target company into those of an acquirer.

Business Combination

The process of merging two or more entities into one, commonly through acquisitions, consolidations, or mergers.