Which of the Following Characterizes a Country's Current Account

question 11

Multiple Choice

Which of the following characterizes a country's current account? 

• A) A country's current account deficit has to be financed by both purchases and sales of assets. 
• B) A country experiencing a current account deficit will see its currency appreciate. 
• C) A country's current account balance consists of exports plus imports of merchandise and services minus income on the country's assets abroad. 
• D) A country experiencing a current account surplus will see its currency depreciate.

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Definitions:

Weapon

An instrument or device designed to inflict harm or physical damage.

Inner Forces

Psychological factors or motivations that drive an individual's behavior from within.

Pessimistic

A tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

Defense Mechanisms

Strategies the ego uses to defend itself against the anxiety provoked by conflicts of everyday life. Defense mechanisms involve denials or distortions of reality.