When a Nation's Current Account Deficit Exceeds Its Capital Account

question 37

Multiple Choice

When a nation's current account deficit exceeds its capital account surplus,the overall ________ in the "balance of payments outcome" means that the nation's central bank is ________ foreign central banks.

• A)surplus,lending to
• B)surplus,borrowing from
• C)deficit,lending to
• D)deficit,borrowing from

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Definitions:

Product Differentiation

A strategy that businesses use to highlight the unique features and benefits of their products or services, distinguishing them from competitors in the market.

Competitive Scope

Refers to the broadness of a company's target market within its industry, ranging from niche to global markets.

Niche Category

A specialized segment of the market for a particular kind of product or service.

Hybrid Strategy

A competitive business strategy that combines elements of cost leadership and differentiation strategies, aiming to provide high value at a lower cost.