Question : A current account deficit indicates that a country is spending more on imports than it is earning from______________.

Option 1: exports

Option 2: services

Option 3: capital

Option 4: investments

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

Question : If a country experiences an increase 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

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 : ___________ is the difference between a country's exports and imports of goods and services.

Option 1: Trade deficit

Option 2: Trade surplus

Option 3: Balance of payments

Option 4: Current account