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:

Cyber Terrorism

The use of the internet to conduct violent acts that threaten or cause significant harm to life, data, or security, with the intent of furthering political or ideological objectives.

New York Stock Exchange

A leading global securities exchange where stocks, bonds, and other financial instruments are bought and sold.

Embezzlement

The act of withholding assets for the purpose of theft by someone who has been entrusted with those assets, often involving money or property.

Corporate Executives

Senior officers within a corporation, such as CEOs or CFOs, who are responsible for managing the organization and making strategic decisions.