Suppose the Current Account of a Country Is in Balance

question 44

Multiple Choice

Suppose the current account of a country is in balance and the official settlements account equals 0. A new transaction occurs so that the current account is now in surplus, but the official settlements account does not change. From this we know that

• A) the balance of trade is now in surplus.
• B) the government is running a budget deficit.
• C) the capital and financial account is now in deficit.
• D) the government must make official reserve transactions.

Apply knowledge of financial mathematics to calculate annuity balances and total payouts.

Apply the binomial theorem and Pascal's triangle to solve binomial expansion problems.

Compute binomial coefficients and understand their properties.

Calculate geometric sequence terms and derive their formulas.

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Definitions:

Concentration

Concentration refers to the amount of a substance per defined space; it is a measure of how much of a solute is dissolved in a specific amount of solvent.

Exothermic

Describes a chemical reaction that releases heat into its surroundings.

ΔS°

The standard entropy change of a system, measuring the change in disorder or randomness during a chemical process under standard conditions.

ΔH°

Denotes the standard enthalpy change of a reaction, measured under standard conditions (1 atm, 298.15 K).