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Romashka [77]
1 year ago
11

In a small open economy, if the world real interest rate is above the rate at which national saving equals domestic investment,

then there will be a trade ______ and ______ net capital outflow. a. surplus; negative b. deficit; positive c. surplus; positive d. deficit; negative
Business
1 answer:
marysya [2.9K]1 year ago
6 0

There will be a trade surplus and positive net capital outflow.

There will be a net capital outflow if the global interest rate is higher than the domestic interest rate. Exports will exceed imports, resulting in a trade surplus.

<h2>What are the characteristics of an open economy?</h2>
  • Its economy is reliant since it depends on other nations for both imports and exports.
  • International alterations have an impact on it.
<h2>What is a trade surplus?</h2>
  • There will be a net capital outflow if the global interest rate is higher than the domestic interest rate. export surplus A trade surplus is an economic indicator indicating a favorable trade balance where a nation's exports are more than its imports.
  • When the outcome of the computation above is positive, there is a trade surplus. A trade surplus is the result of a net local money inflow from international markets. because exports will exceed imports.

Learn more about trade surplus and trade deficit  :

brainly.com/question/17717899?referrer=searchResults

#SPJ4

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True (1)

Explanation:

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Please answer the questions you can
ValentinkaMS [17]

Answer:

11. Explain the primary functions of a commercial bank.  

The Primary function of a commercial bank is to offer loans to individuals and businesses.

Explanation

A commercial bank receives money mostly from individuals and businesses opening saving or current accounts. Then they use these deposits to lend money to other businesses or individuals. This is possible because commercial banks only need to keep the 10% of the deposits made in a savings or current account.  

Other functions of commercial banks are to offer security to the funds deposited by their customer, teach the customers financial education and give them possibilities of investment such as Certificate Term Deposits

17. Describe the procedure of opening a savings bank account in a bank  

The procedure for opening a savings bank account is:

1. Fill in the application form.  

2. Present the following documentation with your application: government-issued identification (a driver's license number, military ID, or other ID), your Social Security number, and a mailing address.  

3. Go to a bank branch or to its website and open the account.

4. Make the initial deposit if required.  

Explanation:

Opening a savings account will require that you identify yourself to the bank with a document that proves who you are, where you live, how old are you and how to contact you. This basic information is gathered in an application form that will be filed as the banks support in front of the regulators in case of an audit and will prove that you are a real person.

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