« previous next »

Author Question: Historically, the key role in assisting countries that ran into financial difficulties was played by ... (Read 58 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?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

The Role of Microglia as the Protector of Brain The Role of Microglia as the Protector of Brain
The Role of the Monosynaptic Stretch Reflex in Postural Control The Role of the Monosynaptic Stretch Reflex in Postural Control
Role of the Whites of Eyes in Emotional Perception Role of the Whites of Eyes in Emotional Perception
The “Infertility Belt” In certain countries in Central Africa, infertility rates are as high as 30% The “Infertility Belt” In certain countries in Central Africa, infertility rates are as high as 30%
In countries where water can be contaminated, breastfeeding is an important option for the health of ... In countries where water can be contaminated, breastfeeding is an important option for the health of ...
Population growth in India, China, Africa, and other countries in the developing world Population growth in India, China, Africa, and other countries in the developing world
Video: Hypoglycemia Animation

For a complete list of videos, visit our video library