The Balance of Payments Includes Which Three Accounts

question 106

Multiple Choice

The balance of payments includes which three accounts?

• A)the current account, the financial account, and the capital account
• B)the capital flows account, the financial account, and the trade account
• C)the net investment account, the net exports account, and the net transfers account
• D)the balance of trade account, the net foreign investment account, and statistical discrepancy
• E)the capital account, the official settlements account, and the current account

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Definitions:

Interest Rates

The segment of a loan that incurs interest charges, customarily expressed as an annual percentage of the loan's unpaid balance.

External Financing

Funds that a business acquires from outside sources to support its operations or growth, such as loans or equity investments.

Yield to Maturity

The expected total yield on a bond when held to its maturity date, articulated as a yearly rate.

Market-Required Rate

The minimum rate of return demanded by investors for investing in a particular asset, reflecting the perceived risk of the investment.