Category: The Balance of Payments

A. larger savings pool available to finance domestic spending
B. higher interest rate which leads to lower domestic investment
C. loss of funds to trading partners overseas
D. decrease in its services exports to other countries

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

A. trade deficit and an excess of investment over domestic saving
B. trade surplus and an excess of investment over domestic saving
C. trade deficits and an excess of domestic savings over investment
D. trade surpluses and an excess of domestic saving over investment

A. current account the capital account
B. current account the trade account
C. trade account the capital account
D. current account the reserve account

A. engage in more government spending
B. reduce government taxes
C. increases private investment spending
D. decrease domestic consumption

A. the country is a net lender to the rest of the world
B. the country is running a net capital account surplus
C. foreign investment in domestic securities is at very low levels
D. All of the above

A. balance of international indebtedness
B. balance of financial transactions
C. balance of payments
D. income statements

A. capital account transactions
B. current account transactions
C. unilateral transfer transactions
D. merchandise trade transactions

A. statistical discrepancy
B. balance of payments
C. balance of trade
D. trade deficit

A. exporter
B. importer
C. debtor
D. creditor