The Most Important and Volatile Component of the Current Account

question 227

Multiple Choice

The most important and volatile component of the current account in the U.S.balance of payments is:

• A) transfer payments abroad,such as foreign aid.
• B) net income on capital held abroad.
• C) net exports.
• D) foreign direct investment.

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Definitions:

Spatial Reasoning

The ability to visualize and manipulate objects and their relationships in space.

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which suggests that intelligence is not a single innate ability but rather a combination of multiple distinct types of intelligences.

Heritability

The proportion of variation among individuals that we can attribute to genes.

Genetic Influences

Factors determined by one's genes that affect physical traits, behaviors, and health outcomes.