If There Is a Trade Deficit That Creates a Current

question 1

Multiple Choice

If there is a trade deficit that creates a current account deficit

• A)there must be a capital account deficit too.
• B)there must be a capital account surplus.
• C)there must be greater exports than imports.
• D)a currency must ultimately decrease in value.

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Definitions:

Overhead Cost

These are expenses related to the ongoing operation of a business that isn't directly tied to a specific product or service.

Favorable Spending Variance

A situation where the actual spending is less than the budgeted or expected amount.

Indirect Materials

Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it.

Flexible Budget

A budget that varies or adapts based on fluctuations in activity or volume levels.