The Capital Account Consists of Three Components: Direct Investment,portfolio Investment,and

question 16

True/False

The capital account consists of three components: direct investment,portfolio investment,and other asset investment.

Recognize the role of profits and losses in the allocation of society's resources.

Comprehend the basic principles of loan interest, including factors affecting interest rates and the relation between loan size and period.

Identify the characteristics of economic resources and differentiate between them (e.g., land, labor, capital).

Understand the notion of the time-value of money and its implications for financial decisions.

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Definitions:

Extinction Procedure

A behavioral psychology technique involving the discontinuation of reinforcements for a certain behavior, leading to its reduction or elimination.

Reinforced

Strengthened or made more effective through added support, material, or structure.

Eliminated

Refers to the removal or deletion of something, making it no longer present or effective.

Identified

Recognized or discovered to be a certain person or thing.