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- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
Which of the following is required to be in equilibrium at all times?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
The balance of payments must always balance because it records all economic transactions between residents of a country and the rest of the world. While individual components like visible trade, invisible trade, or the current account can run surpluses or deficits, the overall balance of payments accounts for these through financial flows, ensuring it always sums to zero.
More Basic of Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes deflation?
- 2.Under what condition can two nations benefit from engaging in international trade?
- 3.Which of the following represents a legitimate form of currency?
- 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?