The Balance of Payments Identity Is Given by BCA

question 19

Multiple Choice

The balance of payments identity is given by BCA + BKA + BRA = 0.Rearrange the identity for a country with a pure flexible exchange rate regime.

• A)BCA + BKA + BRA = 0
• B)BCA = −BKA
• C)BCA + BKA = −BRA
• D)BRA = −BCA

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Definitions:

Grabbing Brakes

A condition where brakes apply too abruptly or with excessive force.

Glazed Linings

Refers to the condition where brake linings develop a shiny surface, reducing braking efficiency.

Fluid Contaminating

The process by which unwanted substances enter a fluid system, potentially causing damage or inefficiency in mechanical systems.

Brake Dust

Fine particulate matter produced from the wear of brake pads and rotors during the braking process.