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Use the Following to Answer Questions: Table: Balance of Payments

Question 30

Multiple Choice

Use the following to answer questions: Table: Balance of Payments Accounts  ITEM  DOLLAR VALUE  Exports $300 m Imports $620 m Net income on capital held abroad $35 m Foreign aid received $100 m Foreign direct investment $120 m Portfolio investment $50 m Other investment $50 m\begin{array} { l c } \hline \text { ITEM } & \text { DOLLAR VALUE } \\\hline \text { Exports } & \$ 300 \mathrm {~m} \\\text { Imports } & \$ 620 \mathrm {~m} \\\text { Net income on capital held abroad } & \$ 35 \mathrm {~m} \\\text { Foreign aid received } & \$ 100 \mathrm {~m} \\\text { Foreign direct investment } & \$ 120 \mathrm {~m} \\\text { Portfolio investment } & \$ 50 \mathrm {~m} \\\text { Other investment } & \$ 50 \mathrm {~m} \\\hline\end{array}
-(Table: Balance of Payment Accounts) According to the data in this table, which of the following statements is TRUE for this country?


A) This country has a balance of trade surplus of $620 million.
B) This country has a balance of trade deficit of $320 million.
C) This country has a current account deficit of $320 million.
D) This country has a current account surplus of $185 million.

Correct Answer:

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