Which of the Following Statements Is False

question 9

Multiple Choice

Which of the following statements is false?

• A) A country runs a net export deficit if it imports more than it exports.
• B) If the current account is in surplus, the capital account must be in deficit.
• C) The overall sum of all the entries in the balance of payments must be zero.
• D) A country runs a current account surplus if it sells more of its assets abroad than it buys abroad.

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Definitions:

Biweekly Paycheck

A payment method where employees receive wages every two weeks, resulting in 26 paychecks per year.

Compounded Monthly

The interest calculation method where interest is added to the principal balance monthly, leading to interest on interest.

Conservative Investment

An investment strategy focused on preserving capital and generating a reliable, but possibly lower, return.

Retirement Account

A financial account specifically designated for saving and investing for retirement, offering tax benefits.