If a Country Consistently Realizes a Current Account Surplus in Its

question 31

True/False

If a country consistently realizes a current account surplus in its balance-of-payments, it likely will become a net debtor in its balance of international indebtedness.

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Definitions:

Long Hedger

An investor or trader who enters into contracts to purchase a commodity or asset at a future date to protect against price increases.

Short Hedger

An investor who hedges against potential price declines by selling futures contracts or entering into similar derivatives positions.

Increase

A rise in the quantity, level, or number of something.

Basis

Basis refers to the difference between the spot price of a commodity and the futures price of the same commodity, which can indicate market expectations of future price movements.