Suppose the current account of a country is initially in balance. A new transaction occurs so that the current account is now in surplus. Official reserve balance is maintained before and after the transaction occurs. From this, we know that
A) the balance of trade is now in surplus.
B) the balance of goods and services is now in surplus.
C) the capital account is now in deficit.
D) the government must make official reserve transactions.
Correct Answer:
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Q51: To know whether a particular situation for
Q66: Q72: An example of an import of a Q79: When there is a negative entry for Q80: Which of the following is NOT a Q82: An increase in the inflation rate of Q85: Special Drawing Rights are Q90: If the United States exports $250 billion Q93: The difference between exports and imports of Q97: The total of all economic transactions between
A)the reserve assets created
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