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If the Current Account Balance Is -$100 Billion and the Capital

question 295

Multiple Choice

If the current account balance is -$100 billion and the capital and financial account balance is $80 billion, then the official settlement account balance is


Definitions:

Tariff

A tax imposed on imported goods to either raise state revenue or protect domestic industries from foreign competition.

Quota

A government-imposed limit on the amount or value of goods that can be imported or exported during a specified time period, often used to protect domestic industries.

Factor Endowments

The quantity and quality of labor, land, and capital that a country possesses and can utilize for manufacturing.

Free Trade

A policy wherein a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports).

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