Saying That the United States Is Running a Large Current

question 266

Multiple Choice

Saying that the United States is running a large current account deficit is equivalent to saying that:

• A) exports exceed imports in the United States.
• B) the United States is running a large capital account surplus.
• C) the balance of payments is negative.
• D) the value of the current capital stock in the United States exceeds the value of future capital flows.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profits.

Revenues

Earnings derived from standard business activities, factoring in reductions and allowances for goods returned.

Expenses

Outflows or other uses of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Liability

Legal obligations related to finances that a business incurs throughout its operational processes.