_____________ Is an Example of a Credit Transaction in the Balance

question 5

Multiple Choice

_____________ is an example of a credit transaction in the balance of payments.

• A)Imports of goods and services
• B)Exports of goods and services
• C)Unilateral transfers to foreigners
• D)Capital outflows

---

Definitions:

Down Payment

An initial payment made when something is bought on credit.

Compounded Quarterly

A method of calculating interest where it is added to the principal amount every three months.

Amortized

The process of paying off a debt through regular payments over a period of time, where each payment covers both interest and a portion of the principal amount.

Compounded Semi-annually

The process of calculating interest on both the initial principal and the accumulated interest of a deposit or loan every six months.