The Official Reserve Transactions Balance

question 10

Multiple Choice

The official reserve transactions balance

• A) equals the current account balance plus the items in the capital account.
• B) tells us the net amount of international reserves that must move between central banks in order to finance international transactions.
• C) has an important impact on the money supply.
• D) is all of the above.

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Definitions:

Roman Candles

Fireworks consisting of a long tube containing several charges that shoot out stars or exploding shells when lit.

Gilberto

A personal name of Italian or Portuguese origin, potentially referring to notable individuals in various fields.

Trumpet

A brass wind instrument with a flared bell and a bright, penetrating tone, played by blowing air through closed lips.

Pyrotechnics

The art or use of firework displays or explosive devices for entertainment, military, or industrial purposes.