If the U.S. current account balance is -$500 billion and the capital and financial account balance is +$510 billion
A) the U.S. official settlements account balance is $10 billion.
B) the U.S. government's holdings of foreign currency increases by $10 billion.
C) foreign investment in the United States is smaller than the U.S. investment abroad.
D) U.S. exports are greater than U.S. imports.
B
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Financial markets
A) channel funds indirectly between borrowers and lenders. B) channel funds directly from lenders to borrowers. C) act as go-betweens by holding a portfolio of assets and issuing claims based on that portfolio to savers. D) generally provide lenders with lower returns than do financial intermediaries.
Refer to Figure 11-5. Curve G approaches curve F because
A) marginal cost is above average variable costs. B) fixed cost falls as capacity rises. C) average fixed cost falls as output rises. D) total cost falls as more and more is produced.