Deficits and Surpluses in the Balance of Payments Are Eliminated

question 5

Multiple Choice

Deficits and surpluses in the balance of payments are eliminated by ____ in a pure flexible exchange rate system.

• A)​the market mechanism
• B)​financial borrowings
• C)​reserve movements
• D)​changes in fiscal and monetary policies

---

Definitions:

Sour Taste

A basic taste sensation perceived by the tastebuds, typically caused by acidic substances like lemon or vinegar.

Sugar Coating

The practice of presenting information in a more favorable light to make it more palatable or acceptable.

Point-Of-Purchase

The location or environment within a retail space where the actual purchase decision is made, often enhanced by displays or advertisements.

Merchandising

The activity of promoting the sale of goods, especially by their presentation in retail outlets, including product display, signage, and special offers.