China Runs a Current Account Surplus with the United States

question 192

Multiple Choice

China runs a current account surplus with the United States.Which of the following must be true about China's balance of payments with the United States?

• A)It must run a financial account deficit.
• B)Its balance of trade must be in deficit.
• C)Its net exports must be negative.
• D)Its balance of payments must run a deficit.

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Definitions:

Payee

The party named in a note or draft to whom payment is to be made.

Stop Payment

A banking process through which an account holder can request the bank to stop the payment of a cheque or payment transaction that has been issued but not yet processed.

Drawer

In banking and finance, refers to the party that writes and signs a check or draft, instructing their bank to pay a specified sum to the named party.

Calendar Days

All days in a month or year, including working days, weekends, and public holidays, considered without exception.