Which of the Following Is True Regarding the Balance-Of-Payments Records

question 28

Multiple Choice

Which of the following is true regarding the balance-of-payments records?

• A) The balance-of-payments accounts do not consider income brought in by non-resident citizens of a country.
• B) The fact that assets and liabilities balance does not essentially mean that a nation is in a particularly good financial condition.
• C) A balance of payments is not a record of condition.
• D) A balance of payments is a determinant of condition.
• E) A balance of payments records all the financial transactions of a country since 1980.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuer, not necessarily its market value.

Transaction Fee

A charge assessed for processing a financial transaction, commonly found in banking and brokerage services.

Gain Or Loss

The financial result of selling an asset or investment for more or less than its purchase price, respectively.

Rate Of Yield

From an investment in stock, the ratio of the dividend to the total cost of the stock.