____________ Is an Example of a Debit Transaction in the Balance

question 4

Multiple Choice

____________ is an example of a debit transaction in the balance of payments.

• A)Exports of goods and services
• B)Unilateral transfers to foreigners
• C)Capital inflows
• D)Receipt of a vase as a gift from a foreign country

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Definitions:

Trade Balance

The difference in value between a country's imports and its exports; a surplus indicates more exports than imports, and a deficit the opposite.

Currency

The paper bills and coins in the hands of the public.

Open-Economy Macroeconomic Model

A framework used in economics to analyze and understand the behaviors and interactions of economies that engage in international trade and finance.

Import Quotas

Limits set by a government on the amount of a specific good that can be imported into the country.