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Hamad The Balance of Payments 15/07/2021
A. If the current accounts is in surplus then the capital account must also be in surplus
B. If the current account is in deficit then the capital account must also be in deficit
C. The overall sum of all the entries in the balance of payments must be positive
D. The overall sum of all entries in the balance of payments must be zero
- A nation wishing to reduce its current account deficit would be advised to ?
- A. engage in more government spending B. reduce government taxes C. increases private investment spending D. decrease domestic consumption...
- In the calculation of gross domestic product net exports are ?
- A. the sum of merchandise trade and services B. the current account plus long-term capital C. the value of merchandise exports minus imports D. short-term capital plus the basic balance...
- A country’s transactions with the rest of the world are recorded in the ?
- A. balance of international indebtedness B. balance of financial transactions C. balance of payments D. income statements...
- All of the following are debit items in the balance of payments except ?
- A. capital outflows B. merchandise exports C. private gifts to foreigners D. foreign aid granted to other nations...
- The role of _______ is to direct one nation’s savings into investments of another nation?
- A. merchandise trade flows B. services flows C. current account flows D. capital flows...
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