Balance-Of-Payments Adjustments

question 14

Multiple Choice

Balance-of-payments adjustments

• A) in a fixed exchange system, intervention does not change the money supply.
• B) in a fixed exchange system, intervention changes the money supply.
• C) in a fixed exchange system, does not change the relative prices of imports and exports between two trading countries.
• D) in a floating exchange system, does not change through exchange-rate movements.
• E) in a floating exchange system, internal prices do not remain stable.

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Definitions:

Subsidiary Ledger

A detailed ledger containing transaction information for individual accounts, which supports and provides details for a summary account in the general ledger.

Customer Accounts

Accounts maintained by businesses to record individual transactions of their customers over a period of time, tracking purchases, payments, and balances.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.