In the Balance of Payments Accounting System,if a Country

question 40

Multiple Choice

In the balance of payments accounting system,if a country

• A) has a current account deficit, it must have a capital account surplus.
• B) has a current account deficit, it must have a capital account deficit.
• C) has a current account surplus, it must have a capital account surplus.
• D) has a capital account deficit, it must have a current account deficit.
• E) has a capital account surplus, it must have a current account surplus.

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Definitions:

Constructive Trust

An equitable trust imposed on a person who wrongfully obtains or holds legal right to property he or she should not possess.

Equitable Trust

A fiduciary relationship wherein one party, known as the trustee, holds assets for the benefit of another party, the beneficiary, according to equitable principles of fairness.

Implied-In-Fact

A contract formed by non-verbal conduct, rather than explicit words, indicating that both parties intend to be bounded.

An Accounting

The process or act of maintaining financial records, summarizing transactions, and analyzing financial data to understand the financial status of an individual or organization.