Identify a True Statement About Balance of Payments

question 133

Multiple Choice

Identify a true statement about balance of payments.

• A) It measures the value of one nation's currency relative to the currency of other nations.
• B) It is a basic measure of the difference between a nation's exports and imports.
• C) It typically corresponds to the balance of trade.
• D) It includes domestic borrowing and excludes foreign borrowing.

---

Definitions:

Safety Inventory

A stock of goods or materials kept as a buffer to mitigate the risk of stockouts due to uncertainties in supply or demand.

Demand Uncertainty

The degree of unpredictability or variability regarding customer demand for a product or service, often affecting inventory management and supply chain planning.

Performance Level

A measure of an individual, organization, or system's efficiency, effectiveness, and ability to meet its goals.

Excess Capacity

Refers to the situation where a firm or economy can produce more goods or services than currently produced due to available resources not being fully utilized.