The Balance of Payments Must Always Balance, Because

question 56

Multiple Choice

The balance of payments must always balance, because:

• A)capital account surplus means the outflow of capital.
• B)current account surpluses automatically generate transfer of assets to foreigners.
• C)current account deficits automatically generate transfer of assets from foreigners.
• D)current account deficits automatically generate transfer of assets to foreigners while current account surpluses automatically generate transfer of assets from foreigners.

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Definitions:

Collectivism

A social theory favoring the priority of group needs over individual needs.

Consistency

The quality of always behaving or performing in a similar way, maintaining the same standards.

Openness to Experience

A personality trait characterized by a willingness to try new things, be creative, and think outside the traditional framework.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.