If a Country Has $55 Billion of Net Capital Outflow

question 223

Multiple Choice

If a country has $55 billion of net capital outflow and a $5 billion increase in its cash reserves and ownership of assets,then the country must be running a trade:

• A) deficit of $50 billion.
• B) deficit of $60 billion.
• C) surplus of $50 billion.
• D) surplus of $60 billion.

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Definitions:

Magnuson-Moss Act

A federal law that governs warranties on consumer products to protect buyers from deceptive warranty practices.

Enacted

Formally made into a law or statute.

1950

Refers to the year in the 20th century, notable for many historical and cultural events worldwide, but without a specific definition in this context.

Statute of Limitations

The statute of limitations is a law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.