Category: The Balance of Payments

A. insure that the sum of all debits matches the sum of all credits
B. insure that trade imports equals the value of trade exports
C. obtain an accurate account of a balance of payments deficit
D. obtain an accurate account of a balance of payments surplus

A. investment inflows
B. merchandise exports
C. payments for American services to foreigners
D. private gives to foreign residents

A. is true by definition in all possible circumstances
B. is supported by recent U.S history
C. focuses only on the overall economy and is thus always true
D. fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending

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. 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

A. capital outflows
B. merchandise exports
C. private gifts to foreigners
D. foreign aid granted to other nations