If a Country Must Make a Net Payment to Foreigners

question 96

Multiple Choice

If a country must make a net payment to foreigners because of a balance-of-payments deficit, the country should

• A)either increase its official reserve assets or borrow anew from foreigners.
• B)either run down its official reserve assets or borrow anew from foreigners.
• C)either run down its official reserve assets or lend more foreigners.
• D)none of the above

---

Definitions:

Reliability

The consistency and stability of a measurement tool or psychological test over time.

Elaborative Rehearsal

A memory technique that involves enriching the information to be remembered by adding meaning or connecting it to existing knowledge.

Rote Rehearsal

A memorization technique that involves repeating information over and over without necessarily understanding or analyzing its content.

Autobiographical Memory

The aspect of memory that involves the recollection of personal experiences and events.