*If a country’s current account balance is zero and the financial payments flowing in and out of the country’s economy are equal, then which of the following must be a true statement?
A. it has an overall or net inflow of financial investment
B. it is not an overall or a net investor in other countries
C. it has an overall or net outflow of financial investment
D. its government is not indebted to other governments
Answer:B
*If a country’s current account balance is zero and the financial payments flowing in and out of the country’s economy are equal, then which of the following must be a true statement?
A. it has an overall or net inflow of financial investment B. it is not an overall or a net investor in other countries C. it has an overall or net outflow of financial investment D. its government is not indebted to other governments
Explanation: Type: Multiple Choice