How are the current account and the financial account related?
What will be an ideal response?
These two accounts are inversely related: the financial account is the flip side of the current account. When a country runs large deficits in its current account, it is financed by large surpluses in its financial account. In other words, when a country imports more than it exports, it must finance that deficit with a surplus of credits in its financial account.
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Compared with other bonds, callable bonds usually have
A) less liquidity. B) a higher price. C) a higher yield. D) low tax payments.
Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hanger and could rent it out for $5,000 per year. He rents a computer for $1,200, buys office supplies for $500, rents an airplane for
$6,000 . pays $1,300 for fuel and maintenance, and hires one worker for $30,000 . Sam's total revenue from pilot training classes this year equaled $90,400 . Sam's explicit costs this year equals: a. $84,400. b. $39,000. c. $55,000. d. $45,600. e. $40,000.