1. State whether the following statements are true or false. i) The trade balance is NOT...

1. State whether the following statements are true or false.

i) The trade balance is NOT the most important component of the BOP.

ii) The cross-border buying and selling of gold is included in the CAB.

iii) When a country has a current account deficit, it means the country has accumulated foreign assets in a given period.

iv) Once statistical discrepancies are taken into account, the BOP is always balanced.

Expert Solution

i) TRUE. Trade balance is not the most important component of the BOP. It is not even the component of the BOP. The three components are the Current Account, the Capital Account and the Financial Account.

ii) TRUE. The cross-border buying and selling of gold is included in the Current Account Balance (CAB). Gold also is treated like any other good or service.

iii) FALSE. When a country has current account deficit, it means that it also experiences capital inflow. Capital inflow means that the Foreign has accumulated our domestic assets in a given period. Hence, country has not accumulated foreign assets in a given period.

iv) TRUE. Balance of payments is prepared on the principles of double entry bookkeeping. This means that all the debits actually match all the credits in the balance of payments. Therefore, once statistical discrepancies are taken into account, the BOP is always balanced

Rahul Sunny answered 2 years ago

1. State whether the following statements are true or false. i) An enzyme catalyst DOES alter...

1. State whether the following statements are true or false. i) An enzyme catalyst DOES alter the equilibrium constant for a reaction. ii) The presence of an enzyme catalyst DOES NOT decrease the energy required to reach the transition state. iii) An enzyme catalyst DOES affect the rate of a biochemical reaction. iv) The presence of an enzyme catalyst DOES NOT decrease the change in free energy (Gfinal - Ginitial) of the overall reaction. 2. True or False? Due to...

State whether the following statements are true of false. If they are true, give a short...

State whether the following statements are true of false. If they are true, give a short justification. If they are false, give a counterexample. For each of the following, P(x) is a polynomial. (a) If P(x) has only even powers, and P(a) = 0 then x^2 ? a^2 divides P(x). (b) If P(x) has only odd powers, and P(a) = 0 then x^2 ? a^2 divides P(x). (c) If P(x) has only even powers, then P(x) has at least one...

State whether EACH of the following statements are true or false. A. A fraction A of...

State whether EACH of the following statements are true or false. A. A fraction A of the Sun’s radiation gets reflected off the atmosphere. (T/F) B. The Earth surface radiates both visible and infrared radiation. (T/F) [ C. Most of the visible radiation from the sun is absorbed by the atmosphere. (T/F) D. The atmosphere emits thermal infrared radiation. (T/F) E. The greenhouse effect is due to the thermal...

For each of the statements (i)—(iii), state whether it is true or false (i) Every system...

For each of the statements (i)—(iii), state whether it is true or false (i) Every system of linear equations has at least one solution. (ii) A system of four linear equations with three variables always has infinitely many solutions. (iii) One can determine whether two straight lines in R 3 intersect by solving an appropriate system of linear equations. (iv) Given any matrix A, then its reduced row echelon form is not unique. (v) Every elementary row operation can be...

I need your answer for this question.Br//Ha State whether the following statements are true or false....

I need your answer for this question.Br//Ha State whether the following statements are true or false. Shortly explain your answer in 1-2 sentences. a) Labor Demand is more elastic in the long run than in the short run. b) In a simple model of labor demand with a competitive firm that uses capital and labor in production, the effect of a reduction in wages on the amount of capital used in production is ambiguous in the long run. c) In...

1.Below are three statements. For each statement: (i) State whether the statement is true or false....

1.Below are three statements. For each statement: (i) State whether the statement is true or false. (ii) Explain your reasoning. A. In an additive relationship, Z defines a large compositional difference across values of X. B. Field experiments have lower external validity than do laboratory experiments. C. Random assignment neutralizes rival explanations.

State whether the following statements are true or false and support it with reasons . Operating...

State whether the following statements are true or false and support it with reasons . Operating leverage explains the firm’s ability to pay the amount of debt to the lender. ( ) The firm’s ROE and ROA are different, this implies that the firm is Financed entirely with common equity. ( ) Financial Leverage reflects the amount of fixed operating cost used in the capital structure. ( ) The financial leverage explains just the negative effect of the debt financing...

State whether the following statements are TRUE or FALSE. Give the reason, If a statement is...

State whether the following statements are TRUE or FALSE. Give the reason, If a statement is true, explain why; if it is false, identify the mistake and try to correct it. Use the diagram for explanation if needed. (NOTE: Marks are based on your reasoning, not only for T/F marking) (i). Change in quantity demanded and change in demand are the same things. (ii). If the demand curve for good A is flatter, and if the demand curve for good...

1 True/False For each of the following statements say whether it is true or false and...

1 True/False For each of the following statements say whether it is true or false and explain why using a couple of sentences, graphs or equations. (a) If marginal cost of serving two markets is identical, then an internationally discriminating monopolist would set the same price in both markets. (b) Granting a market economy status to China would make it more difficult to impose antidumping duties on Chinese firms.

State whether the statements are true or false 1. Demand is the act of obtaining a...

State whether the statements are true or false 1. Demand is the act of obtaining a desired object from someone by offering something in return. [ ] 2. A product can be a person, place, or an idea. [ ] 3. The specialty product is a consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. [ ] 4. One study has estimated that as much as 80 percent of new consumer...

Question