In the Foreign Exchange Market,a Balance of Payments Surplus Is

question 43

Multiple Choice

In the foreign exchange market,a balance of payments surplus is represented by:

• A)excess supply of dollars.
• B)excess demand for dollars.
• C)equilibrium in the foreign exchange market.
• D)none of the above.

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Definitions:

Lending Institution

An organization that provides financial loans to individuals or businesses, expecting repayment with interest.

Discounted

The process of determining the present value of a payment or a series of payments that will be made in the future, taking into consideration a specific interest rate.

Discounted

The process of determining the present value of a future amount, or stream of payments, by applying a discount rate.

Maturity Value

The total amount payable to an investor at the end of a fixed-term investment, including principal and interest.