The ________ provides a means to account for international cash flows in a standardized and systematic manner.
A)parity conditions
B)asset approach
C)balance of payments
D)international Fisher effect

Question

Quizplus · Accepted Answer

The balance of payments is used to provide a standardized and systematic means to account for international cash flows. It keeps track of a country's transactions with the rest of the world, including imports, exports, and financial transactions like investments and loans. The other options, parity conditions, asset approach, and international Fisher effect, are related to exchange rates and do not provide a comprehensive means of accounting for international cash flows.

The ________ Provides a Means to Account for International Cash