If the United States Has a Net Export Surplus,which of the Following

question 57

Multiple Choice

If the United States has a net export surplus,which of the following must be true?

• A)The balance on the financial account must equal the balance on the current account.
• B)Net foreign investment must be positive as well.
• C)Domestic private saving must be greater than net foreign investment.
• D)Domestic public saving must be greater than net foreign investment.

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Definitions:

Initial Margin

The minimum amount of funds required to open a position in the futures market, intended to cover potential losses.

Maintenance Margin

The minimum amount of capital that must be maintained in a margin account after a purchase or trade, to cover the risk of loss.

Margin Call

A requirement from a broker for an investor to add more cash or securities to their account to mitigate potential losses.

Short 100 Shares

The action of borrowing 100 shares of a stock to sell them with the expectation of buying them back later at a lower price.