(A)If,for Every Debit or Credit in the Balance of Payments,an

question 29

Essay

(a)If,for every debit or credit in the balance of payments,an offsetting credit or debit,respectively,of an equal amount is entered,how can a nation have a deficit or a surplus in the balance of payments?
(b)How is a deficit of a surplus in the balance of payments measured?
(c)Why are the concepts and measurement of deficit or surplus not appropriate under a flexible exchange rate system?
(d)What is the difference between a disequilibrium and a deficit in the balance of payments?

---

Definitions:

Reaction Type

A category defining the nature of chemical reactions based on the rearrangement of atoms and changes in their bonding.

Reaction Type

Refers to the classification of chemical reactions based on their outcome or the change they involve, such as synthesis, decomposition, single replacement, or double replacement reactions.

Iron

A chemical element with symbol Fe and atomic number 26, known for its high strength and magnetic properties.

Limiting Reactant

The reactant in a chemical reaction that limits the amount of product that can be formed because it is used up first.