Which Statement Is TRUE

question 386

Multiple Choice

Which statement is TRUE?

• A) The financial account balance is the negative of the current account balance.
• B) A country's balance on the current account will be less than its balance on financial account if exchange rates are allowed to float freely.
• C) If the market for a nation's currency is in equilibrium,a financial account surplus necessarily means a current account surplus.
• D) Exchange rates don't affect either financial accounts or current accounts.

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Definitions:

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the net worth of a company.

Journal Entry

A record in accounting that documents a business transaction in the general ledger.

Government Regulation

Government regulation refers to the laws and rules established by governmental bodies that impose restrictions, requirements, or obligations on the operations of businesses and individuals.

Corporate Form of Organization

A legal structure utilized by businesses that allows them to be recognized as separate legal entities from their owners, providing benefits like limited liability.