Which of the Following Statements About the Balance of Payments

question 492

Multiple Choice

Which of the following statements about the balance of payments accounts is correct?

• A) The official settlements account is typically larger than both the capital and current accounts.
• B) The current account must be greater than the capital account.
• C) Typically the capital account is near zero because it equals the difference between the current account and the official settlements account.
• D) The sum of all three accounts is always zero.

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Definitions:

Physiological Stress

The body's response to a demand or challenge, which can affect physical health, such as increased heart rate and blood pressure.

Metabolic Rate

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm.

Meningitis

An inflammation of the protective membranes covering the brain and spinal cord, potentially leading to serious health issues.

Hyperventilating

Breathing at an abnormally rapid rate, leading to a decrease in carbon dioxide levels in the blood.