Which of the Following Statements Is True

question 45

Multiple Choice

Which of the following statements is true?

• A)Inflows of foreign investment are necessary to prevent future balance of payments deficits.
• B)A current account surplus is always the result of a capital account deficit.
• C)A current account surplus is always the result of a trade account surplus.
• D)A capital account surplus may cause outflows of foreign investment income in the future.

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Definitions:

Quarrelsome

Inclined to argue or dispute, often demonstrating a tendency toward conflict rather than agreement.

Psychoanalytic Theory

A framework for understanding human psychology that emphasizes unconscious conflicts and past experiences as determinants of behavior.

Defense Mechanisms

Unconscious psychological strategies employed to protect oneself from anxiety and to manage emotional conflict and internal or external stressors.

Anxiety

A mood of unease or nervousness, often due to something happening soon or because the consequence is unknown.