Every International Transaction Automatically Enters the Balance of Payments

question 60

Multiple Choice

Every international transaction automatically enters the balance of payments

• A) once either as a credit or as a debit.
• B) twice, once as a credit and once as a debit.
• C) once as a credit.
• D) twice, both times as debit.
• E) the times, once as a credit, onces as a debit, and once as an exchange.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used as an indicator of inflation.

Annual Rate of Inflation

The percentage increase in the price level of goods and services in an economy over a year.

Decade

A period of ten years.

Effective Annual

Referring to an interest rate or return on investment that accounts for the effects of compounding over a year.