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.Management Sciences
A. capital outflow would cause the nation’s currency to depreciate contributing to a trade deficit
B. capital inflow would cause the nation’s currency to depreciate contributing to a trade deficit
C. capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
D. capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit
Related Mcqs:
- All of the following are credit items in the balance of payments except ?
- A. investment inflows B. merchandise exports C. payments for American services to foreigners D. private gives to foreign residents...
- Debit entries on the balance of payments are the entries that would ?
- A. mean a loss of foreign exchange B. bring foreign exchange into the country C. indicate a surplus exist D. exist at the bottom line after all accounts are totaled...
- Current account deficit are offset by______________?
- A. merchandise trade deficits B. merchandise trade surpluses C. capital/financial account surpluses D. capital/financial account deficits...
- Credit (+) items in the balance of payments correspond to anything that ?
- A. involves receipts from foreigners B. involves payments to foreigners C. increases the domestic money supply D. decreases the demand for foreign exchange...
- When all of the debit or credit items in the balance of payments are combined ?
- A. merchandise imports equal merchandise exports B. capital imports equal capital exports C. services exports equal services imports D. the total surplus or deficit equals zero...
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