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“The balance of payments is always balanced.” Discuss.

Answer: True. Every international transaction automatically enters the balance of payments twice, once as a credit and once as a debit.Current account + financial account + capital...
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Which one of the following statements is most true?

A.Any central bank purchase of assets automatically results in an increase in the domestic money supply, while any central bank sale of assets automatically causes the money supply...
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Every international transaction automatically

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.None of the above. Answer: B
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