When a Nation Is Said to Be Running a Balance

question 54

Multiple Choice

When a nation is said to be running a balance of payments surplus,this means its

• A) official settlements balance is positive.
• B) trade balance is positive.
• C) net financial account balance is positive.
• D) current account is positive.

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Definitions:

Lump Sum Payment

A single payment made at a particular time, as opposed to multiple payments over time, often used in contexts like settlements or pensions.

Labor Income

Earnings derived from work or employment, including wages, salaries, commissions, and bonuses.

Budget Line

A graphical depiction in economics that shows all possible combinations of two goods that can be purchased with a fixed amount of income.

Tax Rate

The percentage at which an individual or corporation is taxed.