Which of the Following Was Identified as the "Heart and Soul

question 30

Multiple Choice

Which of the following was identified as the "heart and soul" of the contemporary State Department?

• A) postal service
• B) diplomatic pouch
• C) telephone
• D) cable traffic

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Definitions:

Foreign Exchange Reserves

Assets held on reserve by a central bank in foreign currencies, used to back liabilities and influence monetary policy.

Current Account

A component of a country's balance of payments that measures the trade in goods and services, plus net earnings on investments, and direct transfers.

Capital Account

Part of a country's balance of payments, recording the net change in asset ownership and investments.

Foreign Exchange Markets

Global decentralized or over-the-counter markets for trading currencies, determining the foreign exchange rates.