Which of the Following Is True About the Balance of Payments

question 49

Multiple Choice

Which of the following is true about the balance of payments?

• A)Although there are millions of transactions each year,it is necessary to keep a detailed record of them for accurate accounting purposes
• B)The balance of payments aggregates all merchandise trade into a few major categories
• C)The balance of payments does not include transactions in which the residents of foreign nations are not directly involved
• D)Not only are the net balances of each type of international capital flow included in the balance of payments,but a detailed breakdown of these transactions is accounted for as well

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Definitions:

U-5 Measure

The U-5 Measure is a broader definition of unemployment than the standard, including not only those actively seeking work but also discouraged workers and others marginally attached to the labor force.

Marginally Attached Workers

Individuals who are not in the labor force but want and are available to work, and have looked for a job sometime in the past 12 months but not in the four weeks preceding the survey.

Spells Of Unemployment

Periods of time during which an individual is unemployed but actively seeking work.

Frictional Unemployment

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills