China is currently experiencing a surplus in its current account and its capital/financial accounts.Which of the following is NOT a contributing factor for this unusual situation?
A) The exceptional growth in the Chinese economy contributes to the current account surplus.
B) The positive prospects for China's continued growth contribute to the capital/financial account surplus.
C) China's inevitable acquisition of Taiwan is driving the market for Chinese investment.
D) All of the above are contributing factors for China's twins surpluses.

Question

Quizplus · Accepted Answer

While the exceptional growth in the Chinese economy and the positive prospects for its continued growth contribute to the current account surplus and capital/financial account surplus respectively, the suggestion of China's acquisition of Taiwan driving the market for Chinese investment is unsupported and not a contributing factor for the surplus situation.

China Is Currently Experiencing a Surplus in Its Current Account