CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

If U.S. exports are $100, imports are $120, net income from foreign investments is $10, and net transfers from abroad is -$20, then the U.S. has a current account ______.

A. deficit of $30
B. surplus of $240
C. deficit of $20
Correct Answer: A

The current account surplus is equal to U.S. exports - U.S. imports + net income from foreign investment + net transfers from abroad.

User Contributed Comments 5

User Comment
achu Our -20 net transfers could be the "US temp" workers sending money to their loved ones.
ehc0791 The $10 net investment should belong to capital account, not current account. Am I right ?
bmeisner ehc, I think it was meant to be net interest income (from investments) which is included in the current account.
Shaan23 I agree with ehc. Last two dont belong in current account

Oh wait. Good call bmeiser. Dividend and interest payments from ANY assets is included in current accounts.
To-be-CFA @Shaan23 : Transfers from abroad are unilateral transfers and are included in Current A/c.
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