Use the information below to answer the following questions.
Fact 25.4.1
You are given the following information about the country of Ecoland, whose currency is the turkey, and whose official settlements balance is zero.

-Refer to Fact 25.4.1. What is the current account balance for Ecoland, given the value of net interest income plus net transfers is +3 billion turkeys?
A)-3 billion turkeys
B)-6 billion turkeys
C)+3 billion turkeys
D)+1 billion turkeys
E)zero

Question

Use the information below to answer the following questions.
Fact 25.4.1
You are given the following information about the country of Ecoland, whose currency is the turkey, and whose official settlements balance is zero.
 
-Refer to Fact 25.4.1. What is the current account balance for Ecoland, given the value of net interest income plus net transfers is +3 billion turkeys?
A)-3 billion turkeys 
B)-6 billion turkeys 
C)+3 billion turkeys 
D)+1 billion turkeys 
E)zero

Quizplus · Accepted Answer

The current account balance is the sum of the trade balance, net interest income, and net transfers. If net interest income plus net transfers is +3 billion turkeys, and assuming the trade balance is -3 billion turkeys (as implied by the options), the current account balance would be zero.

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