The Meaning Behind "The Balance of Payments Must Balance" Is

question 27

Multiple Choice

The meaning behind "the balance of payments must balance" is that

• A) a deficit in either the current or capital account must be offset by an equal surplus in the other account.
• B) income inflows must equal income outflows.
• C) imports always equal exports.
• D) net transfers equal the trade balance.

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Definitions:

Peer Evaluations

The assessment of an individual's performance, contributions, or abilities by their colleagues or equals in a workplace or academic setting.

Popularity Contest

A derogatory term for a situation where success is determined more by likability or public opinion than by merit or performance.

Stereotypes

Overgeneralized beliefs about a particular category of people.

Central Tendency Error

A bias in performance appraisals where the evaluator rates most employees as being average, overlooking individual differences in performance.