An Example of an Item Included in the Current Account

question 9

Multiple Choice

An example of an item included in the current account is:

• A) the profits made by a South Korean company operating a plant in the United States.
• B) the stock of Google held by a South Korean investor.
• C) the deposits of a South Korean company in Citibank.
• D) a bond sold by Tesla Motors to a South Korean investor.

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Definitions:

Oligopolists

Firms that are part of an oligopoly, a market structure dominated by a small number of large companies, leading to limited competition.

Elasticity of Demand

A measure of how sensitively the quantity demanded of a good responds to changes in other economic factors, such as price or consumer income.

Collusive Agreement

A secret or illegal cooperation or agreement between parties to limit competition and manipulate market conditions to their advantage.

Cartel

An association of independent businesses or countries that work together to control prices and limit competition in a specific market.