If Northland is currently a net lender and a debtor nation,
A)it has loaned more than it borrowed from the rest of the world this year and has loaned more than it borrowed during its history.
B)it has borrowed more from the rest of the world than it loaned this year and also borrowed more than it loaned during its history.
C)its government budget deficit is growing.
D)its accounting system must be in error if it shows the nation to be a net lender and a debtor nation at the same time.
E)it has loaned more than it borrowed from the rest of the world this year, but borrowed more than it loaned during its history.

Question

Quizplus · Accepted Answer

Being a net lender means that, for the current period (this year), the country has loaned more than it has borrowed. Being a debtor nation indicates that, over the entirety of its history, it has borrowed more than it has loaned. Therefore, option E accurately describes the situation where Northland is currently a net lender but has a historical record of borrowing more than lending.

If Northland Is Currently a Net Lender and a Debtor