« previous next »

Author Question: Historically, the key role in assisting countries that ran into financial difficulties was played by ... (Read 53 times)

skymedlock

  • Hero Member
  • *****
  • Posts: 561
on: Jun 29, 2018
Historically, the key role in assisting countries that ran into financial difficulties was played by
 
  A) Europe. B) Japan.
  C) the IMF. D) the United Nations.

Question 2

If the official settlements balance is zero, a current account surplus implies an equal capital and financial account deficit. Is the previous statement correct or incorrect? Briefly explain your answer.
 
  What will be an ideal response?


kmb352

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

The statement is correct. The sum of the current account balance plus the capital and financial account balance plus the official settlements account must equal zero. If the official settlements account balance is zero, then the sum of the current account balance plus the capital and financial account balance must equal zero. Therefore a current account surplus must be balanced by an equally-sized capital and financial account deficit.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

The Role of Microfilaments in Cell Movement-Showing Cause and Effect in Biology The Role of Microfilaments in Cell Movement-Showing Cause and Effect in Biology
Photograph of an occupational therapist assisting a patient with learning independence in activities Photograph of an occupational therapist assisting a patient with learning independence in activities
Teenage Pregnancy Rates in Developed Countries Teenage Pregnancy Rates in Developed Countries
Ten Leading Causes of Death in Low-Income Countries, 2008 Ten Leading Causes of Death in Low-Income Countries, 2008
Newly Industrialized Countries Newly Industrialized Countries
Role of Factors of Production in Determining Output per Worker, 2009 Role of Factors of Production in Determining Output per Worker, 2009
Video: Properties of water -structure of water and polarity (Ionized and polar compounds)

For a complete list of videos, visit our video library