In a Country's Balance-Of-Payments, Which of the Following Transactions Are

question 35

Multiple Choice

In a country's balance-of-payments, which of the following transactions are debits?

• A) Domestic bank balances owned by foreigners are decreased.
• B) Foreign bank balances owned by domestic residents are decreased.
• C) Assets owned by domestic residents are sold to nonresidents.
• D) Securities are sold by domestic residents to nonresidents.

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Definitions:

Quotas

Quantitative limits set by governments on the amount of specific goods or services that can be imported or exported during a specified time frame.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Quota Rights

Licenses or permissions issued by a government that allow specific quantities of goods to be imported or exported.

Economic Welfare

The overall well-being and standard of living of people in terms of the quantity and quality of goods and services available to them.