The Following Balance-Of-Payments Data Are for the Hypothetical Nation of Zabella

question 1

Multiple Choice

The following balance-of-payments data are for the hypothetical nation of Zabella. All figures are in billions of dollars.

$\begin{array} { | l | c | } \hline \text { Merchandise exports } & + \$ 80 \\\hline \text { Merchandise imports } & - 70 \\\hline \text { Service exports } & + 20 \\\hline \text { Service imports } & - 25 \\\hline \text { Investment income } & + 5 \\\hline \text { Transfers } & - 5 \\\hline \text { Capital and financial inflows } & + 13 \\\hline \begin{array} { l } \text { Capital and financial } \\\text { outflows }\end{array} & - 23 \\\hline \text { Changes in official reserves } & + 5 \\\hline\end{array}$
-The changes in official reserves account indicates that Zabella:

• A)added $5 billion to its stock of foreign currencies through sales of Zabellan dollars
• B)imported more merchandise than it exported
• C)reduced its stock of foreign currencies by $5 billion through purchases of Zabellan dollars
• D)experienced a balance-of-payments surplus
• E)exported more merchandise than it imported

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Definitions:

Rotter's Expectancy

A theory proposed by Julian Rotter, emphasizing the role of individuals' expectations about the outcomes of their behaviors based on past experiences.

Military

Armed forces authorized by a sovereign state or international body to use lethal or non-lethal force to defend its country and interests.

Adler's Theory

Developed by Alfred Adler, focuses on the importance of feelings of inferiority—the inferiority complex—and how they drive people to strive for superiority and success.

Inferiority

A feeling of inadequacy or not measuring up to standards, often associated with a lack of self-esteem and discussed in psychological contexts like Adler's inferiority complex.