Suppose a Country Has a Current Account Surplus and That

question 31

Multiple Choice

Suppose a country has a current account surplus and that there is no intervention by finance ministries or central banks. This current account surplus indicates that the country has

• A) a deficit in its financial account.
• B) a surplus in its financial account.
• C) the official reserve transactions balance is positive.
• D) the official reserve transactions balance is negative.

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Definitions:

Physical Count

The process of manually counting actual inventory items to verify the quantities on hand and adjust the account balances accordingly.

Accounting Period

A specific period of time for which financial statements are prepared to report the financial performance and position of a company; often quarterly or annually.

Adjusting Entries

Journal entries made at the end of an accounting period to adjust the income and expenditure records for accuracies in financial reporting.

Financial Statements

Reports that provide detailed information about a company's financial position and performance, including the balance sheet, income statement, and cash flow statement.