Which of the Following Accounts Within the Current Account of the United

question 88

Multiple Choice

Which of the following accounts within the current account of the United States' balance of payments includes financial gains earned on U.S.assets held abroad?

• A) income receipts account
• B) income payments account
• C) merchandise account
• D) services account

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.

Federal Reserve

The Federal Reserve is the central banking system of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing financial services.

Double Coincidence of Wants

A situation in barter economies where two parties each hold an item the other wants, making it possible for them to exchange these items directly.

100-percent-reserve Banking

A banking system in which banks are required to keep 100% of their deposits available as reserves, thus eliminating the possibility of bank runs.