Except for a Statistical Error Under Flexible Exchange Rates, Any

question 63

Multiple Choice

Except for a statistical error under flexible exchange rates, any current account deficit

• A)Can be only partially offset by capital account surpluses and unilateral transfers.
• B)Must be completely offset by unilateral transfers.
• C)Must be completely offset by a capital account surplus.
• D)Must be completely offset by a trade surplus.

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Definitions:

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.

Double Declining-balance

An accelerated depreciation method that counts the expense twice as fast as the straight-line method, reducing the value of an asset more quickly.

Net Income

The amount of profit left after all expenses, taxes, and costs are subtracted from a company’s total revenue; synonymous with net profit.

Tax Purposes

Describes the reasoning or intention behind financial decisions or calculations made to comply with tax laws and regulations.