Which of the Following Identities Regarding the Balance of Payments

question 11

Multiple Choice

Which of the following identities regarding the balance of payments must be true?

• A) Current-Account Balance + Capital Account Balance + Official Reserve Balance = 0
• B) Current-Account Balance + Capital Account Balance + Official Reserve Balance = 1
• C) Current-Account Balance + Capital Account Balance + Merchandise Imports = 0
• D) Current-Account Balance + Capital Account Balance + Net Financial Inflow = 0

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Definitions:

Cease-And-Desist Orders

Legal directives issued by a court or government agency, requiring individuals or entities to stop an alleged illegal or harmful activity.

Unfair Trade Practices

Dishonest or fraudulent conduct by businesses aimed at gaining an unfair advantage in the marketplace.

Woman Movement

Collective efforts aimed at achieving greater rights, equality, and opportunities for women, encompassing various social, economic, and political reforms.