In Order for the Balance of Payments to Balance

question 49

Multiple Choice

In order for the balance of payments to balance,

• A)the current account balance must equal the capital account balance
• B)international reserves must flow out of the country
• C)international reserves must flow into the country
• D)the current account balance plus the capital account balance plus the net flow of international reserves plus the statistical discrepancy must equal zero
• E)the current account balance plus the capital account balance plus the net flow of international reserves must be greater than the statistical discrepancy

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Definitions:

Decentralization

The distribution of decision-making authority to lower levels in an organization, allowing closer proximity to decision-making and customer interaction.

Responsibilities Delegated

Tasks or duties assigned to a subordinate or team member by a person with authority or leadership within an organization.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.

Variable Cost

Costs that vary directly with the level of production or service volume, such as materials and labor.