The Balance of Payments Is Zero

question 29

Multiple Choice

The balance of payments is zero

• A) because each transaction has equal and opposite entries in the accounts.
• B) because market forces ensure that this is so.
• C) only if the current account balance is zero.
• D) only if the capital account balance is zero.
• E) if the capital inflows equal capital outflows.

---

Definitions:

Regression Model

A statistical technique used to model and analyze the relationships between variables and how one variable's change is associated with the change of another.

Technical Expertise

Having specialized skills and knowledge in a particular field, especially in relation to complex systems or technology.

Interpersonal Skills

The ability to communicate or interact well with other people.

Self-maintained Teams

Groups that operate independently with minimal supervision, self-managing their tasks, responsibilities, and decision-making processes.