Some Groups of Nations Have Experienced Surplus in Their CAs

question 146

Multiple Choice

Some groups of nations have experienced surplus in their CAs for several years, whereas for others the surplus is temporary. Within what groups of nations are surplus nations included?

• A) slow-growth advanced economies with high savings rates, oil-exporting nations, and most of Asia
• B) sub-Saharan African nations, the Indian continent, and the Nordic countries
• C) Argentina, Chile, and Brazil, as well as several Central American nations
• D) Ireland, Spain, and Portugal

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Definitions:

Interest Rate

The percentage of a loan charged to the borrower as interest, usually represented as an annual percentage rate of the remaining loan balance.

Market For Foreign-Currency Exchange

A marketplace where participants can trade currencies from different countries, essentially a repeated framework for the process in

Real Exchange Rate

The price of one country's currency in terms of another currency, adjusted for inflation, which reflects the purchasing power between the two countries.

Surplus

The situation in which the quantity of a good or service supplied is more than the quantity demanded.