Deficits and Surpluses in the Balance of Payments Are Eliminated

question 5

Multiple Choice

Deficits and surpluses in the balance of payments are eliminated by ____ in a pure flexible exchange rate system.

• A)​the market mechanism
• B)​financial borrowings
• C)​reserve movements
• D)​changes in fiscal and monetary policies

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Definitions:

Flexible Budget

A budgeting method that adjusts or scales according to the changes in activity or volume levels within a company.

Patient-Visits

The number of occasions when patients receive care from healthcare facilities or providers.

Static Planning Budget

A budget based on a fixed level of activity and does not change in response to variations in the level of actual activity.

Revenue Variance

Variation between the projected revenue and the actual revenue earned by a business.