A Country's Balance of Payments Is Best Described as a System

question 108

Multiple Choice

A country's balance of payments is best described as a system that records:

• A)the physical flow of goods and services between countries.
• B)international trading, borrowing and lending flows.
• C)only official transactions between the government and governments of other countries.
• D)the flow of investment between countries.

---

Definitions:

Materials Purchases

The acquisition of raw materials or supplies required for the production of goods or provision of services.

Payment Discount

A reduction in the invoice amount offered by a seller to the buyer in return for early payment within a specified time frame.

Cash Balance

The amount of cash on hand or in bank accounts, immediately available to a business or individual.

Cash Disbursements

Money paid out by a business in the course of its operations, such as paying for expenses, purchasing assets, or repaying loans.