Exchange Rates, Balance of Payments, and International Debt

Question 1

Purpose of IMF is…

Answer 1

to make loans to countries facing balance of payments problems

Question 2

Balance of Trade

Answer 2

difference between the value of merchandise exports and the value of merchandise imports.

Unfavorable balance occurs when the value of the exports is less than the value of the imports

Question 3

Balance of Payments

Answer 3

Difference of money coming into a country and money going out of a country