Given the Size of the Statistical Discrepancy Needed to Balance

question 83

Multiple Choice

Given the size of the statistical discrepancy needed to balance the balance of payments account,one can infer that

• A) hidden capital flows into the U.S. are inconsequential.
• B) items in the balance of payments are measured quite accurately.
• C) many international transactions go unrecorded.
• D) all of the above occur.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.

Interest Rate Risk

The potential for investment losses that result from a change in interest rates, affecting the value of fixed-income securities inversely to the direction of the rate change.

Default Risk

The risk that a borrower will not make the required payments on their debt obligations.

Maturity Risk

The risk associated with the changing value of securities due to the time remaining until their maturity date.