Author Question: Historically, the key role in assisting countries that ran into financial difficulties was played by ... (Read 64 times)

skymedlock

  • Hero Member
  • *****
  • Posts: 561
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
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
 

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

For a complete list of videos, visit our video library