Final answer:
The statement is true. An increase in sales along with an increase in accounts payable reduces the need for new external funds. Additionally, in financial markets, both a rise in loan demand and supply will increase the quantity of loans made and received.
Step-by-step explanation:
The statement 'An increase in sales accompanied by an increase in accounts payable will reduce the amount of new external funds required, all else being equal' is true. When a company has an increase in sales, it implies higher revenue, and if the increase in accounts payable indicates a delay in cash payment for expenses, this results in more cash being available in the short term.
Therefore, the immediate need for external financing, such as loans, is reduced since the business has more internal funds to use towards its operations and growth.
Now, considering changes in the financial market, both an increase in the demand for loans and an increase in the supply will lead to an increase in the quantity of loans made and received. On the flip side, a fall in demand or a fall in supply would generally lead to a decrease in the quantity of loans.
Regarding a country's current account, if more monies are flowing out of the country than coming in (such as through high import payments), the current account will become more negative, indicating a deficit. Conversely, if more money enters the country (like through exports or foreign investments), the current account balance will be less negative or more positive, indicating a surplus.