A Balance of Payments Deficit Is Associated with a ________

question 43

Multiple Choice

A balance of payments deficit is associated with a ________ of international reserves,while a balance of payments surplus is associated with a ________.

• A)loss;loss
• B)loss;gain
• C)gain;loss
• D)gain;gain

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Definitions:

Abbreviations

Shortened forms of words or phrases used for convenience.

Debit

An entry on the left side of an account record, used to increase an asset or expense or decrease a liability, equity, or revenue.

Credit

An accounting entry that increases the balance of liabilities and equity accounts, and decreases the balance of an asset or expense account.

Rent Expense

The cost incurred for renting a property or equipment, recognized as an expense on the income statement.