If a Nation's Current Account Balance Is -$20 Billion,while Its

question 9

Multiple Choice

If a nation's current account balance is -$20 billion,while its capital and financial account balance is +$17.5 billion,we can conclude with certainty that this nation is experiencing a:

• A)merchandise trade deficit
• B)merchandise trade surplus
• C)reduction in its stock of foreign currency reserves
• D)balance-of-payments surplus
• E)deficit on its non-merchandise transactions

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Definitions:

Tax Return

A document filed with the tax authorities detailing income earned, taxes payable, and deductions claimed by an individual or entity.

False Statements

Intentionally dishonest declarations or representations, especially ones made under circumstances where truthfulness is expected or required.

Tax Returns

The documents filed with a taxing authority that report income, expenses, and other pertinent tax information.

Penalties

Sanctions or punishments imposed for breaking a law, rule, or contract.