When Is a Balance of Payments Account Out of Balance

question 153

Multiple Choice

When is a balance of payments account out of balance?

• A)only when exports are greater than imports
• B)only when imports are greater than exports
• C)when exports are either greater or less than imports
• D)only when exports are greater or less than imports over a sustained period
• E)never

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Definitions:

Cocoa

A powder made from roasted and ground cacao seeds, used in the production of chocolate, as well as in beverages and baking.

Consumption

The process by which goods and services are used up by consumers, reflecting economic activity and individuals' preferences.

Income

Financial gains received from work or investments, usually on a consistent basis.

Demand

The quantity of a good or service consumers are willing and able to purchase at a given price level.