If the Current Account Balance Shows a Surplus,and Capital Account

question 15

Multiple Choice

If the current account balance shows a surplus,and capital account receipts exceed capital account payments,then the net change in government international reserves must be ________,indicating a(n) ________ in U.S.international reserves.

• A) positive; increase
• B) negative; increase
• C) negative; decrease
• D) positive; decrease

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Definitions:

Capital Market

A financial market in which long-term debt or equity-backed securities are bought and sold.

Wealth Creation

The process of generating financial wealth through various means, such as investment, entrepreneurship, or economic growth.

Competitive Capital

A term that typically refers to the financial resources a company uses to stay competitive in its market, including investments in technology, talent, and innovation.

Purchased New Cars

The act of buying vehicles from the manufacturer or dealer that have not previously been owned or used.