A Balance of Payments Deficit Is Associated with a ________

question 43

Multiple Choice

A balance of payments deficit is associated with a ________ of international reserves,while a balance of payments surplus is associated with a ________.

• A)loss;loss
• B)loss;gain
• C)gain;loss
• D)gain;gain

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Definitions:

Amortizing

The process of gradually paying off a debt over time through regular payments.

Straight-Line Method

A method of calculating depreciation by evenly distributing the cost of an asset over its useful life.

Semiannual Interest

An interest payment made twice per year on investment vehicles such as bonds, which represents a portion of the annual interest rate.

Annual Yield

The return on an investment over a one-year period, expressed as a percentage of the investment’s initial cost.