Question

In: Finance

It is NOT possible to have a deficit in the trade balance and a surplus in...

It is NOT possible to have a deficit in the trade balance and a surplus in the current account balance

true

false

Securities are a asset items in the Feds Balance sheet

true

false

Solutions

Expert Solution

1. This given statement is FALSE because there can be deficit in the trade balance and surplus in the current balance account at many times, because of various types of nature of expenditure that are representative of those accounts.

Given statement is FALSE

2.Federal Reserve balance sheet is just like another balance sheet, and securities are always asset in the Federal Reserve balance sheet, so the given statement is TRUE.

Given Statement is TRUE.


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