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.Management Sciences
Category: The Balance of Payments
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
A current account surplus implies that ?
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 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
Direct investment and security purchases are classified as ?
A. capital account transactions
B. current account transactions
C. unilateral transfer transactions
D. merchandise trade transactions
The difference between the balance on current account and the balance on capital account is the ?
A. statistical discrepancy
B. balance of payments
C. balance of trade
D. trade deficit
For the first time since World War I, in the mid-1980s the United States became a net international ?
A. exporter
B. importer
C. debtor
D. creditor
The difference between a country’s balance of payments and its balance of international indebtedness?
A. is equal to official reserve transactions
B. occurs because of foreign exchange fluctuations
C. reflects statistical discrepancies
D. reflects the difference between flow and stock concepts
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
In balance of payments accounting tourism and travel are classified in the ?
A. merchandise trade account
B. services account
C. unilateral transfers account
D. capital account
Referring to the above table, the U.S balance of international indebtedness suggests that the U.S is a net ?
A. debtor
B. creditor
C. spender
D. exporter
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