A Current Account Deficit Exists When

question 338

Multiple Choice

A current account deficit exists when:

• A) the balance on current account is negative.
• B) spending flowing out of the country is less than spending flowing into the country.
• C) net exports are positive.
• D) an economy buys less from foreigners than it sells to them.

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Definitions:

Partnership Debts

Liabilities or financial obligations incurred by a partnership in the course of its business activities.

Limited Liability

This refers to a business structure where the owners' personal assets are protected from company debts and liabilities.

Sole Proprietorship

A company that is both owned and run by one person, with no separate legal identity between the proprietor and the business itself.

Separate Legal Entity

A business structure that is legally considered an independent entity separate from its owners, such as a corporation or LLP.