A Country's Balance of Payments Is Sometimes Incorrectly Said to Be

question 152

Multiple Choice

A country's balance of payments is sometimes incorrectly said to be "in surplus." This usually refers to a situation where

• A)total credits exceed total debits.
• B)the government is increasing its holding of foreign-currency reserves.
• C)the official financing account is also in surplus.
• D)the official financing accounts show a decrease in the stocks of official reserves.
• E)credits exceed debits on the capital account only.

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Definitions:

Positive Emotions

Feelings that are generally beneficial to well-being and happiness, such as joy, gratitude, serenity, and interest.

Inflexible

characterizes an unwillingness or inability to change or adapt to new circumstances, ideas, or information.

Stereotyping

The act of assigning a set of characteristics to people based on their membership in a particular group, often oversimplifying and having negative connotations.

Perceptual Distortion

The misinterpretation or misperception of a real external stimulus, often influenced by an individual's mental state or preconceptions.