If the Balance on the Current Account Is $346 Billion

question 126

Multiple Choice

If the balance on the current account is $346 billion and the balance on the financial account is -$204 billion, what is the balance on the capital account, assuming no statistical discrepancy?

• A)$550 billion
• B)$142 billion
• C)$0
• D)-$142 billion
• E)-$204 billion

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Definitions:

Support Activities

Business activities that do not add value directly to a firm’s product or service under consideration but support the primary activities that do add value.

Add Value

To add value means to enhance or increase the worth of a product or service through additional features, improved quality, or enhancement of some form.

Differentiation

The process of making a product, service, or business model stand out from competitors, often through unique features, quality, or branding.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.