In Order for the Balance of Payments to Balance

question 15

Multiple Choice

In order for the balance of payments to balance,

• A)the current account balance must equal the capital account balance
• B)international reserves must flow out of the country
• C)international reserves must flow into the country
• D)the current account balance plus the capital account balance plus the net flow of international reserves plus
• The statistical discrepancy must equal zero
• E)the current account balance plus the capital account balance plus the net flow of international reserves must
• Be greater than the statistical discrepancy

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Definitions:

Electrical Impulse

An electrical charge that moves through neurons, enabling signals to be transmitted throughout the body, including to and from the brain.

Chain Reaction

A series of chemical reactions where the product or by-product of one reaction initiates another.

Contraction

The process of muscle fibers shortening in response to a stimulus, leading to movement or increased tension.

Cardiac

Relating to the heart, especially in terms of its function or diseases.