A Balance of Payments Deficit Is Defined as the Amount

question 22

Multiple Choice

A balance of payments deficit is defined as the amount by which

• A)a country's exports exceed its imports.
• B)a currency must appreciate in order to reach equilibrium.
• C)quantity supplied of a country's currency exceeds quantity demanded.
• D)quantity demanded of a country's currency exceeds quantity supplied.

---

Definitions:

Shallow

relating to an area of water that is not deep.

Narrow Islands

Long, slim landforms surrounded by water, often formed by volcanic activity or the buildup of sediment.

Clasts

Fragments or grains of mineral or rock detached from its original position and included within another rock.

Weak Current

A relatively mild or gentle flow of water in a sea, river, or other body of water, which can influence local climates and marine transportation.