The Balance of Payments _____

question 84

Multiple Choice

The balance of payments _____.

• A) with some nations is different than it is with others
• B) is always zero
• C) can only be expanded when the government has foreign exchange reserves
• D) is negative when the nation runs a trade deficit

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Definitions:

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without subsequent change for market value fluctuations.

Liquidated

The process of converting assets into cash or using them to pay off liabilities in the event of a business closure, bankruptcy, or when assets are no longer needed.

Subsidiary Company

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Parent Company

A corporation that owns a majority of the shares of another company, thus controlling management and operations.