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:

Constructive Condition

An implied condition in contracts that must be met before the obligation of the other party becomes due, even if it is not explicitly stated in the contract itself.

Impracticability

A doctrine that excuses a party from performing a contract when unforeseen events make performance excessively difficult or expensive.

Good Faith

Good Faith is the concept of acting with honesty and sincerity without any intention to defraud or seek unfair advantage.

Consequential Damages

Losses suffered as a consequence of a breach of contract, not directly caused by the breach but resulting from the specific circumstances of the affected party.