Which of the Following Must Be Considered When Examining a Nation's

question 38

Multiple Choice

Which of the following must be considered when examining a nation's balance of payments?

• A)Too much attention is placed on the balance of goods and on short-term data
• B)International transactions are independent so that an attempt to reduce the US trade deficit with one nation doesn't affect the surplus the US has with another.
• C)Measuring the deficit in the balance of payments is strictly correct under a flexible exchange rate system and not under a fixed exchange rate system.
• D)If we have a deficit in the balance of payments,under the flexible exchange rate that will not bring any pressure on the currency value.

---

Definitions:

Sequestering Effect

A process in which carbon and other substances are removed from the atmosphere and stored in trees, plants, or the ocean, often discussed in the context of mitigating climate change.

Primacy Effect

The inclination to recall data from the start of a list more accurately than the details following it.

Recency Effect

A memory phenomenon that involves the ability to recall the last items in a series better than those in the middle.

Summary

A brief statement or account of the main points of something.