Which of the Following Statements About the Balance of Payments

question 428

Multiple Choice

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

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

Explain the impact of motivation and needs (e.g., the need for closure, accuracy, and confirmation of beliefs) on social cognition.

Differentiate between implicit and explicit processes in shaping attitudes and behaviors.

Understand the concept of heuristics and their role in decision-making.

Grasp the significance of nonconscious processes in social cognition.

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Definitions:

Flotation Costs

The administrative cost of issuing new securities. Consists largely of commissions and marketing fees, but printing and engraving costs can also be significant.

Retained Earnings

The portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders.

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Capital Gains

The profit earned from the sale of assets or investments when the selling price exceeds the purchase price.