If a Country's Balance of Payments Is Constantly in a Large

question 77

Multiple Choice

If a country's balance of payments is constantly in a large deficit,a central bank will generally:

• A) lower interest rates.
• B) buy government securities regularly.
• C) increase interest rates.
• D) encourage looser monetary policy.

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Definitions:

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, used in the operation of a business and not expected to be consumed or converted into cash in the short term.

Profit Center Income Statement

A financial report that details the revenues, costs, and profits of a distinct unit within a company, focusing on its financial performance.

Controllable Revenues

Revenues earned by a profit center.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.