The Balance-Of-Payments Adjustment Mechanism Developed During the 1700s by the English

question 93

Multiple Choice

The balance-of-payments adjustment mechanism developed during the 1700s by the English economist David Hume is the:

• A) Income-adjustment mechanism
• B) Flexible-exchange-rate-adjustment mechanism
• C) Price-adjustment mechanism
• D) Rank-reserve-adjustment mechanism

---

Definitions:

Withdrawal

The act of removing funds from an account or the act of taking out resources or assets from business use by the owners.

Business Transaction

An economic event that affects the financial position of a company and is recorded in its accounting system.

Accounting Equation

A fundamental principle in accounting that represents the relationship between a company's assets, liabilities, and equity (Assets = Liabilities + Equity).

Landscape Designs

The art of arranging or modifying the features of a landscape, yard, or garden for aesthetic or practical purposes.