The balance of payments account which records foreign investment in the United States and U.S. investments abroad is the
A) capital and financial account.
B) current account.
C) official settlements account.
D) None of the above because foreign investment in the United States is included in one account and U.S. investment abroad is included in another account.
Question 2
The above table gives the initial balance sheet for Mega Bank. Mega Bank's desired reserves equal its required reserves. Based on the initial balance sheet, what is the required reserve ratio for Mega Bank?
A) 3 percent
B) 10 percent
C) 30 percent
D) 1.4 percent
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