Multiple Choice

-Refer to the above table. Suppose the transactions in the table are added to a balance of payments account that is already in balance. What will have to take place to keep the balance of payments in balance?
A) Nothing will have to be done as the accounts are in balance.
B) Nothing will have to be done as the accounts are in equilibrium.
C) The U.S. government will have to make official reserve transactions equal to $11,000.
D) Foreign governments will have to make official reserve transactions equal to -$11,000.
Correct Answer:
Verified
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