A Capital Account Surplus Necessarily Implies

question 27

Multiple Choice

A capital account surplus necessarily implies

• A)a balance of payments surplus.
• B)a current account surplus.
• C)a current account deficit.
• D)an increase in the nation's official reserve assets.

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Definitions:

Simulation Heuristic

A cognitive process people employ to assess the frequency or likelihood of events based on how easily they can imagine those events occurring.

Error

A mistake or inaccuracy, which can occur in reasoning, perception, action, or judgment.

Judgment

The capability to reach reasoned decisions or sensible judgments.

Heuristic Thinking

A cognitive process that simplifies decision making by using practical methods or experiential rules of thumb, often at the cost of accuracy or thoroughness.