Balance of Trade Deficit Results in a Current Account

question 25

Multiple Choice

balance of trade deficit results in a current account

• A)deficit
• B)surplus
• C)IMF intervention
• D)World Bank loan

---

Definitions:

Income

Income earned, particularly when it's consistent, from work or investment returns.

Efficient Allocation

An economic condition where resources are distributed in a way that maximizes the welfare of society, ensuring that every good or service is produced up to the point where the last unit provides a benefit equal to the cost of producing it.

Risk

Uncertainty about future outcomes.

Risk-Averse

A description of an individual or organization that prefers to avoid uncertainty and is willing to sacrifice some potential gain to avoid risk.