What is a balance-of-payments surplus?
What will be an ideal response?
A balance-of-payments surplus arises when imbalances in the combined current account and capital and financial account result in an increase in official reserves. In this case, the nation’s treasury or central bank sells its currency to purchase foreign currency, which it adds to its stock of official reserves. The net purchase of official reserves shows up as a subtraction (?) from the foreign purchases of U.S. assets item because they are a debit or outflow of a nation’s currency. The increase in official reserves ensures that the balance of payments sum to zero.
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A change in quantity supplied of a product is the result of a change in
A) the price of the product. B) consumer income. C) the cost of producing the product. D) the state of production technology.
Other things equal, the steeper the slope of the aggregate supply curve, the more effective will be the expansionary fiscal policy
a. True b. False Indicate whether the statement is true or false
Which of the following allows you to provide information about the relationship between two variables?
a. coordinate system. b. pie chart c. bar graph d. time-series graph
In the event of a default by a borrower, the bank is not authorized to sell the borrower's collateral to pay off the loan
Indicate whether the statement is true or false