The Balance of Payments Has Become a Central Issue for the United

question 27

Multiple Choice

The balance of payments has become a central issue for the United States because

• A) when the balance of payments is not balanced, society is unbalanced.
• B) the U.S. economy cannot grow when the balance of payments is in deficit.
• C) the U.S. has run huge trade deficits in every year since 1982.
• D) the U.S. never experienced a surplus in its balance of payments.
• E) the U.S. once ran a large trade surplus of about $40 billion.

---

Definitions:

Refuse

To decline to accept or allow something; to show unwillingness to do, accept, give, or allow something.

Special Type Of Draft

A particular form of negotiable instrument, such as a check or bill of exchange, with specific conditions or purposes.

Electronic Fund Transfer

A digital transaction that moves funds from one account to another without the use of cash or paper checks.

Overdraft

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero, leading to a negative balance.