Suppose That There Is a Current Account Deficit of $255

question 297

Multiple Choice

Suppose that there is a current account deficit of $255 billion and a capital account surplus of $245 billion. It may be concluded that the

• A) overall balance of payments is +10.
• B) overall balance of payments is -10.
• C) official reserve transaction account balance is +10.
• D) official reserve transaction account balance is -10.

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Definitions:

Bereaved People

Individuals who are experiencing grief due to the loss of a loved one.

Denial

A psychological defense mechanism where a person refuses to accept the reality of a fact or experience, despite evidence.

Anger

A strong feeling of annoyance, displeasure, or hostility.

Short-term Illnesses

Medical conditions that last for a limited period of time, usually requiring brief treatment and recovery.