Question 1

Which is false with regard to double-entry bookkeeping

Accepted Answer

A) Each transactions is entered twice with equal values 
B) It usually leads to a statistical discrepancy 
C) It should lead to the balance of net borrowing and net lending in all the accounts 
D) All of the above 
A) Each transactions is entered twice with equal values 
B) It usually leads to a statistical discrepancy 
C) It should lead to the balance of net borrowing and net lending in all the accounts 
D) All of the above D

Question 2

The two parts of each transaction cannot both be recorded in the current or financial account

Accepted Answer

A) True 
B) False 
C) Can be true or false 
D) Depends on whether it is a current account or a financial account transaction 
A) True 
B) False 
C) Can be true or false 
D) Depends on whether it is a current account or a financial account transaction B

Question 3

Which is not a debit transaction ?

Accepted Answer

A) Export of goods and services 
B) Primary income receivable 
C) Secondary income receivable 
D) None of the above 
A) Export of goods and services 
B) Primary income receivable 
C) Secondary income receivable 
D) None of the above D

Question 4

What is not part of the current account?

Accepted Answer

A) Exports and imports of goods and services, 
B) Primary investment income received 
C) Capital transfer receivable 
D) Secondary income receivable 
A) Exports and imports of goods and services, 
B) Primary investment income received 
C) Capital transfer receivable 
D) Secondary income receivable

Question 5

In national income accounting

Accepted Answer

A) The deficit in the current account is equal to the government deficit plus investment minus saving 
B) The surplus in the current account is equal to the government surplus minus investment plus saving 
C) Both of the above 
D) Neither of the above 
A) The deficit in the current account is equal to the government deficit plus investment minus saving 
B) The surplus in the current account is equal to the government surplus minus investment plus saving 
C) Both of the above 
D) Neither of the above

Question 6

The export of a good or service is recorded in a nation's balance of payments as

Accepted Answer

A) Net lending in the current account and net lending in the financial account 
B) Net borrowing in the current account and net borrowing in the financial account 
C) Net lending in the current account and net borrowing in the financial account 
D) Net borrowing in the current account and net lending in the financial account 
A) Net lending in the current account and net lending in the financial account 
B) Net borrowing in the current account and net borrowing in the financial account 
C) Net lending in the current account and net borrowing in the financial account 
D) Net borrowing in the current account and net lending in the financial account

Question 7

Capital account transactions include

Accepted Answer

A) Bank deposits abroad 
B) The purchase of a foreign stock 
C) Derivatives 
D) None of the above 
A) Bank deposits abroad 
B) The purchase of a foreign stock 
C) Derivatives 
D) None of the above

Question 8

Which is false about the United States balance of payments in 2013?

Accepted Answer

A) It was the most indebted nation in the world 
B) Its current-account deficit was larger than its trade deficit 
C) It had a very large trade deficit 
D) It borrowed heavily from abroad 
A) It was the most indebted nation in the world 
B) Its current-account deficit was larger than its trade deficit 
C) It had a very large trade deficit 
D) It borrowed heavily from abroad

Question 9

The sale of a foreign stock and the deposit of the proceed in a foreign bank is recorded as

Accepted Answer

A) Incurrence of portfolio investment liability and incurrence other investment liabilities 
B) Acquisition of portfolio investment asset and acquisition of other investment assets 
C) Acquisition of portfolio investment assets and incurrence other investment liabilities 
D) Incurrence of portfolio investment liability and acquisition of other investment assets 
A) Incurrence of portfolio investment liability and incurrence other investment liabilities 
B) Acquisition of portfolio investment asset and acquisition of other investment assets 
C) Acquisition of portfolio investment assets and incurrence other investment liabilities 
D) Incurrence of portfolio investment liability and acquisition of other investment assets

Question 10

The Statistical discrepancy is needed to ensure that

Accepted Answer

A) Current account minus capital account equal financial account 
B) Current account plus the financial account equal capital account 
C) Current account plus capital account equal financial account 
D) Current account equal capital account plus financial account 
A) Current account minus capital account equal financial account 
B) Current account plus the financial account equal capital account 
C) Current account plus capital account equal financial account 
D) Current account equal capital account plus financial account

Question 11

The international investment position of a nation

Accepted Answer

A) The total amount and the distribution of a nation's assets abroad,and foreign assets in the nation at the end of the year 
B) Is also called the balance of indebtedness 
C) Is usefulness is in projecting the future flow of income from foreign investments and payments on foreign investments in the nation 
D) All of the above 
A) The total amount and the distribution of a nation's assets abroad,and foreign assets in the nation at the end of the year 
B) Is also called the balance of indebtedness 
C) Is usefulness is in projecting the future flow of income from foreign investments and payments on foreign investments in the nation 
D) All of the above

Question 12

The official reserve assets of the nation include

Accepted Answer

A) The gold holdings of the nation's monetary authorities 
B) Special Drawing Rights, 
C) The nation's reserve position in the IMF 
D) All of the above 
A) The gold holdings of the nation's monetary authorities 
B) Special Drawing Rights, 
C) The nation's reserve position in the IMF 
D) All of the above

Question 13

In national income accounting

Accepted Answer

A) (M-X)= (G-T)+ (I-S) 
B) (X-M)= (T-G)+ (S-I) 
C) (X-M)= (T-G)- (I-S) 
D) All of the above 
A) (M-X)= (G-T)+ (I-S) 
B) (X-M)= (T-G)+ (S-I) 
C) (X-M)= (T-G)- (I-S) 
D) All of the above

Question 14

Primary income receipts include the

Accepted Answer

A) Net acquisition of portfolio investment assets 
B) Net acquisition of direct investment liabilities 
C) Income earned on foreign investments 
D) Current transfer receipts 
A) Net acquisition of portfolio investment assets 
B) Net acquisition of direct investment liabilities 
C) Income earned on foreign investments 
D) Current transfer receipts

Which is false with regard to double-entry bookkeeping

The two parts of each transaction cannot both be recorded in the current or financial account

Which is not a debit transaction ?

What is not part of the current account?

In national income accounting

The export of a good or service is recorded in a nation's balance of payments as

Capital account transactions include

Which is false about the United States balance of payments in 2013?

The sale of a foreign stock and the deposit of the proceed in a foreign bank is recorded as

The Statistical discrepancy is needed to ensure that

The international investment position of a nation

The official reserve assets of the nation include

In national income accounting

Primary income receipts include the

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, Present, and Future

Filters

Exam 13: Balance of Payments

Which is false with regard to double-entry bookkeeping

The two parts of each transaction cannot both be recorded in the current or financial account

Which is not a debit transaction ?

What is not part of the current account?

In national income accounting

The export of a good or service is recorded in a nation's balance of payments as

Capital account transactions include

Which is false about the United States balance of payments in 2013?

The sale of a foreign stock and the deposit of the proceed in a foreign bank is recorded as

The Statistical discrepancy is needed to ensure that

The international investment position of a nation

The official reserve assets of the nation include

In national income accounting

Primary income receipts include the

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, Present, and Future

Filters