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Questions and Answers
What is the purpose of the balance of payments?
What is the purpose of the balance of payments?
- To predict future economic trends
- To calculate the country's taxes
- To summarize a country's exports and imports, investment activity, and flows of funds (correct)
- To track the country's GDP
What is the current account balance in the given example?
What is the current account balance in the given example?
- 0
- -30 (correct)
- 30
- 10
What is a trade deficit similar to?
What is a trade deficit similar to?
- Saving money
- Borrowing (correct)
- Earning interest
- Investing in stocks
What determines whether a trade deficit is good or bad?
What determines whether a trade deficit is good or bad?
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What is excluded from the current account?
What is excluded from the current account?
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What is the potential benefit of a trade deficit if managed properly?
What is the potential benefit of a trade deficit if managed properly?
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