Balance of Payment (BOP)data May Be Important for Any of the Following

question 25

Multiple Choice

Balance of payment (BOP) data may be important for any of the following reasons:

• A) BOP data helps to forecast a country's market potential, especially in the short run.
• B) the BOP is an important indicator of a country's foreign exchange rate.
• C) changes in a country's BOP may signal a change in controls over payment of dividends and interest.
• D) all of the choices provided above

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Definitions:

Rational Economics

The study of how individuals and groups make decisions to allocate resources in order to maximize their welfare.

Utility Maximization

An economic principle that suggests individuals seek to achieve the highest level of satisfaction or utility from their actions and decisions.

Needs and Wants

The basic requirements for survival, such as food and shelter, compared to desires or wishes that do not necessarily contribute to one’s survival.

World Trade Organization

An international organization that regulates and facilitates international trade between nations.