If Foreign Reserves Are Fixed,the Balance of Payments Requires That

question 222

Multiple Choice

If foreign reserves are fixed,the balance of payments requires that a:

• A) country must have a capital deficit when it has a trade deficit.
• B) country must have a capital surplus when it has a trade deficit.
• C) country's capital account and trade account must be balanced individually.
• D) country must have a trade deficit the year after it has a trade surplus.

---

Definitions:

Self-Managed Teams

Groups of employees who are given the autonomy to manage their work and make decisions within pre-defined boundaries.

Organizations

Entities comprising multiple people working together in a structured way to achieve a collective goal or set of goals.

Beliefs and Assumptions

Fundamental convictions or premises that individuals hold to be true, guiding their behavior and interpretation of events.

Informal Elements

Non-official, unofficial parts of a structure or system which may influence or affect its function.