Practice Capital Account (7.2) - International Economics - IB 10 Individuals & Societies

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10 questions

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6 sample questions

Question 1.
What does a capital account record?
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Think about where money flows between countries.
Question 2.
Name one component of the capital account.
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Consider types of investments.
3Question 3.
What is the main purpose of the capital account?
- To track trade balances
- To record financial transactions
- To measure economic growth
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Focus on financial activities between nations.
4Question 4.
A surplus in the capital account indicates which of the following?
- True
- False
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Think about what surplus means in financial terms.
Question 5.
Evaluate a hypothetical country with a consistent capital account surplus. What economic policies might it adopt to maintain this surplus and ensure sustainable growth?
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Consider how capital policies can help long-term growth.
Question 6.
Analyze a nation facing a capital account deficit. Discuss potential strategies it could employ to reduce dependency on foreign investments.
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Think about how economic self-sufficiency can create a balance.

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