The Current Account Records

question 65

Multiple Choice

The current account records:

• A)last year's flows of funds into and out of the country.
• B)the current flows of imports and exports of goods and services,net income earned by residents from foreign assets,and net transfer payments.
• C)all the foreign direct investment received by a country in a year.
• D)the purchase of financial assets,such as stocks and bonds,by the residents of a country in a year.
• E)the purchase of all real assets,such as land and housing by the citizens of a country in a year.

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Definitions:

Production Targets

Specific goals set for the quantity of products to be produced within a certain time frame.

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the market, where individual self-interests unintentionally benefit the economy as a whole.

Market Failures

Circumstances where a free market's distribution of goods and services is inefficient, frequently warranting the involvement of the government.

National Economic Plan

A comprehensive strategy formulated by a government to stabilize the economy and stimulate growth.