If Balances in Foreign Accounts Are Substantially Reduced Due to an Excess

question 137

Multiple Choice

If balances in foreign accounts are substantially reduced due to an excess of demand relative to supply:

• A)loans are usually sought from central banks and other institutions to replenish balances
• B)price quotations are adjusted to affect a reduction in demand and an increase in supply
• C)currency may be shipped abroad for deposit in such accounts
• D)Export-Import Bank loans are sought to bolster balances

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Definitions:

Negotiations Impasse

A situation in which parties involved in negotiations cannot reach an agreement and progress is halted.

Decertification

The process of revoking or withdrawing the certification of an individual, organization, or product, often in a legal or professional context.

Public Sector

The portion of an economy that comprises government services and enterprises, including administration, defense, public education, and healthcare.

Private Sector

The part of the economy that is owned and managed by private individuals and companies, rather than by the state, and operates for profit.