The Balance of Payments Is

question 98

Multiple Choice

The balance of payments is

• A) the equilibrium result when two countries achieve purchasing power parity.
• B) an account that records changes in exchange rates between two countries.
• C) an account that records all economic transactions between a country and all other countries, usually within a year.
• D) all of the above.
• E) none of the above.

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Definitions:

Key

An essential element or a device used to open locks, regarded metaphorically as a crucial component or part of a larger system.

Political Risk

The potential for losses or other negative impacts to a business resulting from political changes or instability within a country.

Governmental Attitudes

The stance or policy approach adopted by a government towards a particular issue or sector.

Bureaucratic Risk

involves the uncertainties and slowdowns that can occur within an organization due to rigid procedures, policies, and hierarchies.