If the Balance on the Current Account Is $346 Billion

question 162

Multiple Choice

If the balance on the current account is $346 billion and the balance on the financial account is -$204 billion,what is the balance on the capital account,assuming no statistical discrepancy?

• A)$550 billion
• B)$142 billion
• C)$0
• D)-$142 billion

---

Definitions:

Payback Period

The duration required for an investment to generate cash flows sufficient to recover its initial cost.

AAR

Average Annual Return, which measures the average return generated by an investment per year over a specified period.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Discounted Payback Period

The time it takes for an investment to generate cash flows to recover its initial cost, accounting for the time value of money.