A Favorable Balance of Payments Means That

question 38

Multiple Choice

A favorable balance of payments means that

• A) exports exceed imports.
• B) imports exceed exports.
• C) payments exceed trade.
• D) exports and other payments exceed imports and other receipts.
• E) total receipts exceed total payments.

Analyze changes in real versus nominal income or expenditures over time.

Identify the impact of inflation on nominal and real interest rates.

Comprehend the consequences of various types of inflationary measures on economic indices.

Determine the effects of changes in the quality of goods and the introduction of new goods on economic measures.

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Definitions:

Rates of Return

The gains or losses of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Rational Risk-averse Investor

An investor who prioritizes minimizing risk over achieving potentially higher returns when making investment decisions, acting based on logical analysis.

Well-diversified Portfolio

A Well-diversified Portfolio is an investment strategy that involves spreading investments across various asset classes and sectors to reduce risk while improving potential returns.

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, and other categories.