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Questions › JNU › JNU SSS 2017 › Q24
1 mark, −0.25International Economics › Balance of payments and exchange rates › Balance of payments accounts and the current accountModerateabout 1 min

JNU SSS 2017 Question 24: Balance of payments and exchange rates

In a world with only three countries (AAA, BBB and CCC), if countries AAA and BBB have trade surpluses, then which of the following can be said (assume exports and imports are both valued fob)?

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Plain-text version

In a world with only three countries (A, B and C), if countries A and B have trade surpluses, then which of the following can be said (assume exports and imports are both valued fob)? (A) C must necessarily have a current account deficit (B) C 's trade is balanced (C) If C has a current account surplus, it must necessarily have a surplus in its invisibles balance (D) C could also have a trade surplus

Balance of payments and exchange rates has come up 120 times in 7 exams since 2007.

What this question tests

This question is on Balance of payments accounts and the current account, part of Balance of payments and exchange rates in International Economics.

How a country's transactions with the world are recorded.

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