Question : A current account deficit indicates that a country is spending more on __________than it is earning from__________.

Option 1: exports, imports

Option 2: goods, services

Option 3: capital, financial

Option 4: imports, exports

Question : If a country receives more income from its foreign investments than it pays to foreign investors, it will have a:

Option 1: Current account surplus

Option 2: Current account deficit

Option 3: Capital account surplus

Option 4: Capital account deficit

Question : What is a trade surplus?

Option 1: When a country exports more than it imports

Option 2: When a country imports more than it exports

Option 3: When a country has no trade

Option 4: When a country has a deficit in trade

Question :  What is a trade deficit?

Option 1: When a country imports more than it exports

Option 2: When a country exports more than it imports

Option 3: When a country has no trade

Option 4: When a country has a surplus in trade

Question : If a country experiences a decrease in its foreign exchange reserves, it indicates:

Option 1: A surplus in the current account

Option 2: A deficit in the current account

Option 3: A surplus in the capital account

Option 4: A deficit in the capital account