Search
.Management Sciences
Category: The Balance of Payments
When a country has a trade deficit it ?
A. purchases more stocks and bonds from the rest of the world than it sells
B. purchases more goods from the rest of the world than it sells
C. sells more goods to the rest of the world than it purchases
D. sells more stocks and bonds to the rest of the world than it purchases
A nation will a current account deficit will be ?
A. lending more money to other nations
B. experiencing a surplus in exports of goods an services
C. reducing its indebtedness to other nations
D. going further into debt with other nations
In the balance of payments travels and tourism are included in the category of ?
A. unilateral transfers
B. capital account
C. merchandise account
D. services account
The current account includes ?
A. the value of trade in merchandise
B. services
C. unilateral transfers
D. All of the above
The record of a country’s transactions in goods, services and assets with the rest of the world is its ?
A. balance of trade
B. capital account
C. current account
D. balance of payments
Purchases of government securities in the United States by foreigners is ?
A. a credit item in the current account
B. a debit item in the capital account
C. a credit item in the capital account
D. a debit item in the current account
Which of the following statements is True ?
A. The overall sum of all the entries in the balance of payments must be positive
B. A country runs a current account surplus if it sells more of its assets abroad than it buys abroad
C. A country runs a capital account deficit if it imports more than it exports
D. If the current account is in surplus the capital account must be in deficit
Which of the following statements is correct ?
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
_______ is needed to balancell the balance of payments statements?
A. credit transactions
B. debit transactions
C. unilateral transfers
D. statistical discrepancy
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
Recent Comments