The Balance of Payments Is

question 104

Multiple Choice

The balance of payments is:

• A) a yearly summary of all the economic transactions between residents of one country and residents of the rest of the world.
• B) the sum of the balance of trade,net income on capital held abroad,and net transfer payments.
• C) the price of one currency in another currency.
• D) a currency whose value is not pegged but governments will intervene extensively in the market to keep the value within a certain range.

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Definitions:

Deposits

Funds placed into banking institutions for safekeeping, which can earn interest over time depending on the type of account.

Federal Open Market Committee

The branch of the Federal Reserve System that determines the direction of monetary policy, including decisions on interest rates and the growth of the United States money supply.

Regional Fed Presidents

Officials who head the regional Federal Reserve Banks, playing key roles in monetary policy discussions and implementation in the United States.

Voting

The act of expressing a choice or preference in a public election or decision-making process.