Exam 16: Payments Among Nations

Which of the following transactions could contribute to a British current account surplus? Discuss. a.A French firm sells defense equipment to the British government for 250 million pounds in bank deposits b.Great Britain makes a gift of $500 million to the Iraqi government in the form of equipment to aid in reconstruction.

The international investment position of a country shows:

A credit item in the balance of payments is:

Explain the three different viewpoints (meanings) of the current account balance. Discuss the macroeconomic interpretations of a current account deficit.

In the balance of payments, the statistical discrepancy is used to:

During the 20^th century and into the 21^st, the U.S. net international investment position has:

Which of the following constitutes the largest component of the world's international reserve assets?

A statement of the stocks of a country's foreign assets and foreign liabilities at a point in time represents the country's:

The _____ measures the sum of the current account balance plus the nonofficial financial account balance.

In 2013, U.S. households, businesses, and government were buying more goods and services than they were producing.

In September 2005, exports of goods from the U.S. decreased $3.3 billion to $73.4 billion, and imports of goods increased $3.8 billion to $144.5 billion. This increased the deficit in:

The net value of the flow of goods, services, income, and gifts is the current account balance.

In a nation's balance of payments, which one of the following items is always recorded as a positive entry?

Every international exchange of value is entered into the balance-of-payments accounts _____ time(s).

Capital inflows are debits and capital outflows are credits.

A nation is considered to be a(n) _____ in the international market, if its current account is in deficit.

An increase in a nation's financial liabilities to foreign residents is a:

If the balance of payments accounts of a country shows a current account deficit, it means that:

At present, the majority of a nation's official reserve transactions are done by using foreign exchange assets instead of gold.

We often hear that trade deficits are bad for a country. Do you agree or disagree with this viewpoint? Explain carefully.