Which Partner Is Considered the Most Vulnerable as a Result

question 18

Multiple Choice

Which partner is considered the most vulnerable as a result of a computation of vulnerability rankings?

• A)The partner who has the lowest loss absorption potential
• B)The partner who has the highest loss absorption potential
• C)The partner with the highest capital account balance
• D)The partner with the lowest capital account balance

---

Definitions:

Balanced Budget

A financial situation where revenues are equal to expenditures, resulting in no deficit or surplus.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in real GDP, real income, employment, industrial production.

Constitutional Amendment

A formal change or addition to a constitution, often requiring a specific process and approval to be enacted.

Budget Surpluses

Occurs when a government's revenues exceed its expenditures during a fiscal period, leading to extra funds.