The Balance of Payments Is Zero

question 3

Multiple Choice

The balance of payments is zero

• A) because each transaction has equal and opposite entries in the accounts.
• B) because market forces ensure that this is so.
• C) only if the current account balance is zero.
• D) only if the capital account balance is zero.
• E) if the capital inflows equal capital outflows.

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Definitions:

CSR Activities

Corporate Social Responsibility activities involve companies taking responsibility for their effects on environmental and social well-being, often going beyond legal requirements.

Legal Impact

The effect or influence of law on an activity, process, or situation, often in terms of compliance or litigation.

Prosecuted

The action of formally accusing someone of a crime and conducting legal proceedings against them in a court.

Global Firms

Companies that operate and provide services or goods in multiple countries around the world.