The Nation of Redland Reported That Their Imports for the Previous

question 142

Multiple Choice

The nation of Redland reported that their imports for the previous year were $4 billion greater than its exports.During the same period,Redland reported a favourable balance of payments.This information suggests:

• A)Redland's gold reserves have increased in value.
• B)Redland has made an error in their reporting.The nation must have had a balance of payments deficit since more money flowed out of Redland for imports than flowed into the country for its exports.
• C)Redland devalued their currency to obtain a more favourable exchange rate.
• D)Money inflows from tourism,foreign aid,foreign investment and other sources more than offset Redland's trade deficit.

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Definitions:

External Benefit

A benefit derived from a product or service that affects people who are not directly involved in the transaction or production of it.

Pollution Reduction

Efforts and measures taken to decrease the amount of pollutants released into the environment.

Trade Permits

Licenses or permissions required by governments for businesses to engage in certain trade activities, often used to control the volume or nature of traded goods and services.

Trade Permits

Authorizations given by government or other regulatory bodies allowing businesses to engage in foreign trade activities.