When a Country Must Make a Net Payment to Foreigners

question 22

Multiple Choice

When a country must make a net payment to foreigners because of a balance-of-payments deficit,the central bank of the country

• A)should do nothing.
• B)should run down its official reserve assets (e.g.,gold,foreign exchanges,and SDRs).
• C)should borrow anew from foreign central banks.
• D)should either run down its official reserve assets (e.g.,gold,foreign exchanges,and SDRs)or borrow anew from foreign central banks.

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Definitions:

Guillain-Barré Syndrome

A rare neurological disorder in which the body's immune system mistakenly attacks part of its peripheral nervous system.

Peripheral Nervous System

The portion of the nervous system that lies outside the brain and spinal cord, responsible for connecting the central nervous system to limbs and organs.

Guillain-Barré Syndrome

A rare autoimmune disorder that can lead to muscle weakness, numbness, and paralysis.

Homeostasis

A balanced, stable state within the body.