In a Freely-Floating Exchange Rate System,the Sale of Japanese Cars

question 16

Multiple Choice

In a freely-floating exchange rate system,the sale of Japanese cars to the United States will be offset by which item on the US balance of payments?

• A)a credit on the net liquidity balance
• B)a debit on the capital account
• C)a debit on the trade account
• D)a credit on the current account

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Definitions:

Evolutionary Psychology

The theoretical approach in psychology that examines mental traits, such as memory, perception, and language, from the perspective of evolutionary theory and adaptation.

Sociobiology

An interdisciplinary branch of science that studies the biological underpinnings of social behavior across species.

Empathy

The ability to understand and share the feelings of another person, fostering emotional connection and comprehension.

Altruism

The selfless concern for the well-being of others, often leading to actions that benefit someone other than oneself.