There Are Three Balance of Payments Accounts

question 37

Multiple Choice

There are three balance of payments accounts. The sum of the balances on these three accounts will equal

• A) the total amount of the nation's foreign borrowing.
• B) zero.
• C) the total amount of the nation's foreign lending.
• D) the total amount of the nation's exports.
• E) the total amount of the nation's imports.

---

Definitions:

Guaranteed A Profit

An assurance that an investment or business endeavor will yield a positive return or profit.

Long Run

In economics, a period in which all inputs, including capital, can be fully adjusted, allowing firms to change their scale of operation.

Economic Profit

An economic profit occurs when the revenue generated from a business activity exceeds both the explicit and implicit costs associated with that activity.