The Official Settlements Balance Equals

question 13

Multiple Choice

The official settlements balance equals

• A)the sum of the current account and the capital and financial account.
• B)the current account minus net unilateral transfers.
• C)net investment income from abroad.
• D)the net increase in a country's official reserve assets.

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Definitions:

Excess Supply

A situation where the quantity supplied of a good or service exceeds the quantity demanded at the current price, often leading to a decrease in price.

Money Supply

The full amount of monetary assets in an economy at a particular time, covering cash, coins, and the amounts in checking and savings accounts.

Value of Money

The purchasing power of money, which can vary over time due to factors like inflation or economic conditions.

Vertical Axis

In graphing, the y-axis upon which variables or values are plotted, typically representing dependent measurements in a chart or graph.