The Purpose of International Reserves Is to Finance

question 22

Multiple Choice

The purpose of international reserves is to finance:

• A) Short-term surpluses in the balance of payments
• B) Long-term surpluses in the balance of payments
• C) Short-term deficits in the balance of payments
• D) Long-term deficits in the balance of payments

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Definitions:

Captive Audience

An audience that is not free to avoid a message, often used in advertising contexts where consumers cannot easily disregard the advertisement.

Online Friends

Individuals with whom one maintains a friendship over the internet, often through social media platforms, without necessarily having met in person.

Active Consumers

Consumers who actively seek information, evaluate products, and make conscious choices rather than making passive decisions.

Influentials

Individuals who have the power to affect purchase decisions of others because of their authority, knowledge, position, or relationship.