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Questions and Answers
What does a surplus in the balance of payments indicate?
What does a surplus in the balance of payments indicate?
- The country is exporting more than it is importing (correct)
- The country is experiencing a decrease in foreign investments
- The country is facing a trade deficit
- The country's currency is depreciating
What is the balance of payments?
What is the balance of payments?
- The total value of exports and imports of goods and services
- The amount of money in a country's treasury
- The government's budget for managing international trade
- The record of all economic transactions between residents of a country and the rest of the world (correct)
What does the capital account in the balance of payments record?
What does the capital account in the balance of payments record?
- Consumer spending on imports
- International investment and borrowing (correct)
- Domestic government spending
- Exports of goods and services
