When a Country Runs a Current Account Deficit, What Happens

question 44

Multiple Choice

When a country runs a current account deficit, what happens to the money that flows to other countries?

• A) It is used to buy assets in the deficit country.
• B) It is put into the receiving country's infrastructure.
• C) It is converted to securities.
• D) It is used to pay for social programs in the receiving country.

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Definitions:

Ethical Lapse

A failure to act in a morally correct manner, often leading to a breach of ethical standards or principles.

Intellectual Property Rights

Legal rights granted to individuals or organizations over creations of their minds, like inventions, literary and artistic works, designs, and symbols.

Quoting Sources

Refers to the practice of giving credit to the original source of words, ideas, or data used in one's own work.

Online Data

Refers to information that is stored, processed, or transmitted via internet-based platforms or services.