Which of the Following Combinations Is Plausible for a Nation's

question 208

Multiple Choice

Which of the following combinations is plausible for a nation's balance of payments? (All numbers in billions.)

• A) current account = 10, capital account = 40, official reserve transaction account = 50
• B) current account = 40, capital account = 20, official reserve transaction account = -50
• C) current account = 50, capital account = -30, official reserve transaction account = 20
• D) current account = 30, capital account = -20, official reserve transaction account = -10

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Definitions:

Individual Profits

The net earnings obtained by a person after subtracting all relevant expenses from their revenue.

Cartel

An association of manufacturers or suppliers created to maintain high prices and restrict competition.

Strategic Interactions

Actions taken by entities in which each one's success depends not only on their own actions but also on the actions of others.

Oligopoly

A market structure characterized by a small number of firms controlling a large majority of market share, often leading to limited competition and higher prices for consumers.