In the Balance of Payments, Which of the Following Is

question 123

Multiple Choice

In the balance of payments, which of the following is TRUE of the sum of the capital account balance, the current account balance, and the official reserve transactions account balance?

• A) This sum is either positive or negative, depending on whether the sum of all surplus and deficit items associated with cross-border transactions is positive or negative.
• B) This sum must always be zero, because the sum of all surplus and deficit items associated with cross-border transactions must equal zero.
• C) This sum is positive only if the U.S. government operates with a budget surplus.
• D) This sum is positive only if the U.S. government operates with a budget deficit.

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Definitions:

Differential Treatment

The practice of varying one's behavior or responses based on the specific characteristics or needs of individuals or groups.

Gender

Socially and culturally constructed roles, behaviors, expressions, and identities associated with being male, female, or a variation thereof.

Victimized

The act of being subjected to harm, deception, or crime, often resulting in suffering.

College Students

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