In Order for the Balance of Payments to Balance

question 49

Multiple Choice

In order for the balance of payments to balance,

• A)the current account balance must equal the capital account balance
• B)international reserves must flow out of the country
• C)international reserves must flow into the country
• D)the current account balance plus the capital account balance plus the net flow of international reserves plus the statistical discrepancy must equal zero
• E)the current account balance plus the capital account balance plus the net flow of international reserves must be greater than the statistical discrepancy

---

Definitions:

Microwave

An electromagnetic wave with a wavelength shorter than that of a normal radio wave, used in microwave ovens to heat food, and in various forms of communication technology.

Skyrocketing Oil Demand

An observed rapid increase in the need or desire for oil, typically due to industrial growth, technological advancements, or changes in consumer behavior.

Plastic

Plastic is a wide-ranging category of synthetic or semi-synthetic materials that are moldable and can be shaped into solid objects of diverse shapes and sizes, widely used across multiple industries.

Television Set

An electronic device designed to receive and display broadcasts or video signals, serving as a primary medium for entertainment, news, and advertisement.