Which of the Following Statements Is TRUE

question 12

Multiple Choice

Which of the following statements is TRUE?

• A)The financial account balance is the negative of the current account balance.
• B)A country's balance on current account will be less than its balance on financial account if exchange rates are allowed to float freely.
• C)If the market for a nation's currency is in equilibrium, a financial account surplus necessarily means a current account surplus.
• D)Exchange rates don't affect either financial accounts or current accounts.

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Definitions:

Behavior Modification

A technique aiming to change negative behaviors into positive ones through reinforcement and punishment.

Modeling Behavior

A learning process that involves observing and imitating the behavior of others as a way of acquiring new behaviors.

Self-Efficacy

An individual's belief in their own capacity to execute behaviors necessary to produce specific performance attainments.

Competence

The ability to effectively perform or accomplish a task, activity, or role to a specified standard based on one's skills, knowledge, and experience.