The Balance of Payments Accounts Contain Information About the

question 230

Multiple Choice

The balance of payments accounts contain information about the

• A)purchases of U.S.financial assets by foreigners.
• B)purchases of foreign financial assets by U.S.citizens.
• C)levels of U.S.exports and imports.
• D)All of the choices/statements are true.

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Definitions:

Money Supply

The total amount of money available in an economy at a particular time.

Official Money Supply

The total amount of monetary assets available in an economy at a specific time, as measured and published by the central bank.

Precautionary Demand

The desire to hold cash or liquid assets as a safeguard against potential financial emergencies.

Speculative Demand

The demand for assets or goods not for their immediate consumption or use, but for the purpose of resale at a higher price in the future.