The Balance of Payments Is Zero

question 17

Multiple Choice

The balance of payments is zero

• A) as an accounting identity.
• 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.

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Definitions:

Fair Rates

Charges or prices that are considered reasonable, equitable, and just, especially in the context of public utilities or services.

Farmers And Merchants

Refers to the traditional backbone of local economies, especially before industrialization, representing those who produce food and goods and those who trade them.

Chinese Immigrants

Relates to people from China who migrated to various countries around the world, particularly notable in the 19th and early 20th centuries to the United States for railroad construction and mining.

Western Gold Fields

Areas in the western United States, particularly in California and Alaska, where gold was discovered in the 19th century, leading to gold rushes and significant migration.