If the Current Account Shows a Deficit, the Capital Account

question 89

True/False

If the current account shows a deficit, the capital account must show a surplus of the same amount.

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Definitions:

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.

Interest Rates

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Analyst

A professional who studies various financial data and information to make investment recommendations or forecast financial trends.

Financial Statements

Formal records that outline the financial activities and position of a business, person, or entity.