Regarding the international payments process,which statement is TRUE?
A) In international trade, money will flow from the country with the strongest currency to that of the weakest.
B) The World Bank monitors the trade of its members to insure that money is flowing properly between the various countries.
C) The World Bank monitors the national banks of its members to insure that money is flowing properly between the various countries.
D) By international law, international trade must involve money flowing between two countries.
E) Money does not actually have to flow between two countries.

Question

Quizplus · Accepted Answer

E)If trade between the two countries is in balance, meaning that money inflows and outflows are equal for both countries, money does not have to flow between the two countries.

Regarding the International Payments Process,which Statement Is TRUE