Author Question: If the current account is a deficit of 25 then (a) the capital account is a surplus of 25. (b) ... (Read 179 times)

go.lag · **on:** Jun 30, 2018

If the current account is a deficit of 25 then

(a) the capital account is a surplus of 25.
(b) the cash account is a surplus of 25.
(c) the capital account is a surplus of 25 if the cash account is zero.
(d) the cash account is a deficit of 25

Question 2

The growth of the Euromarkets resulted in

a. developing-country governments borrowing from European banks instead of American and Japanesebanks
b. higher interest rates in Europe than in the U.S. and Japan
c. a general trend toward substituting foreign aid for bank lending
d. a general trend toward substituting bank lending for foreign aid
e. none of the above