If a Country Is Grappling with a Major Balance-Of-Payment Difficulty,it

question 78

Multiple Choice

If a country is grappling with a major balance-of-payment difficulty,it may not be able to expand imports from the outside world.Instead,the country may be tempted to

• A)impose measures to restrict imports.
• B)impose measures to discourage capital outflows.
• C)impose measures to restrict imports and discourage capital outflows.
• D)none of the options

---

Definitions:

Trade Acceptance

A draft that is drawn by a seller of goods ordering the buyer to pay a specified sum of money to the seller, usually at a stated time in the future. The buyer accepts the draft by signing the face of the draft, thus creating an enforceable obligation to pay the draft when it comes due. On a trade acceptance, the seller is both the drawer and the payee.

Draft

A preliminary version of a document or an order for payment issued by one party to another.

Buyer

An individual or entity that purchases goods or services from another party in an exchange transaction.

Pay

The monetary compensation received by an individual for their services or work.