Suppose the Current Account of a Country Is Initially in Balance

question 109

Multiple Choice

Suppose the current account of a country is initially in balance. A new transaction occurs so that the current account is now in surplus. Official reserve balance is maintained before and after the transaction occurs. From this, we know that

• A)the balance of trade is now in surplus.
• B)the balance of goods and services is now in surplus.
• C)the capital account is now in deficit.
• D)the government must make official reserve transactions.

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Definitions:

Amino Acids

Organic compounds that combine to form proteins, essential for the growth and repair of body tissues.

Regulatory

Pertaining to or responsible for controlling or directing according to rules, principles, or laws.

Genes

Genes are fundamental units of heredity that carry information necessary for the synthesis of proteins, influencing an organism's traits and functions.

Chorion

The outermost membrane surrounding an embryo in mammals, including humans, contributing to the formation of the placenta.