Asked by Naioby Davis on Jul 29, 2024
Verified
In one year the United States had a current account deficit of −$461 billion. The balance on the capital account was −$6 billion. What was the balance on the financial account?
A) +$467 billion
B) −$467 billion
C) +$455 billion
D) −$461 billion
Current Account Deficit
A situation where a country's total imports of goods, services, and transfers exceed its total exports, indicating it is spending more on foreign trade than it is earning.
- Calculate and interpret exchange rates and their practical implications for international transactions.
- Understand the architecture and parts of a nation's balance of payments.
Verified Answer
ZK
Zybrea KnightAug 01, 2024
Final Answer :
A
Explanation :
The balance on the financial account is the opposite of the sum of the current account and capital account deficits to balance the accounts. Therefore, +$461 billion (current account deficit) + $6 billion (capital account deficit) = +$467 billion.
Learning Objectives
- Calculate and interpret exchange rates and their practical implications for international transactions.
- Understand the architecture and parts of a nation's balance of payments.