A Deficit in the Current Account Implies

question 137

Multiple Choice

A deficit in the current account implies

• A) there is an excess demand in the foreign currency market.
• B) a deficit in the capital account.
• C) a surplus in the capital account.
• D) nothing about the capital account.

Explain the significance and impact of base-rate information in judgment.

Understand the cognitive biases and their effects on perception and decision-making.

Recognize the organization of memory about people by specific categorizations.

Understand the distinction between memory-based judgments and on-line impression formation.

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Definitions:

Restrictive Indorsement

An indorsement in which words have been added to the signature of the indorser that specify the purpose of the indorsement or the use to be made of the commercial paper, such as “for deposit only.”

Dishonored

Refers to a failure in fulfilling an obligation, such as a check not being paid because of insufficient funds.

Draft

A preliminary version of a document or plan, subject to revisions and improvements.

Blank Indorsement

An indorsement made by a signature alone, with no particular indorsee, written on a negotiable instrument.