Exam 10: The Balance-of-payments

About 25 percent of the world's official foreign exchange reserves are held in U.S.dollars

The burden of a current account deficit would be the least if a nation uses what it borrows to finance:

Unilateral transfers consist of private-sector transfers,such as church contributions to alleviate starvation in Africa,as well as governmental transfers,such as foreign aid.

If a country realizes a current-account deficit in its balance of payments,it becomes a net supplier of funds to the rest of the world.

About two-thirds of the world's official foreign exchange reserves are held in

The balance of payments includes international transactions of households and businesses,but not government.

In a country's balance of payments,which of the following transactions are debits?

That U.S.charities donate funds to combat starvation in Africa constitutes a debit transaction on the U.S.balance of payments.

Concerning a country's business cycle,rapid growth of production and employment is commonly associated with:

For the U.S.balance of payments statement,which of the following is not recorded in the capital and financial account?

If the United States government sells military hardware to Saudi Arabia,the transaction would be recorded on the U.S.balance of payments as a:

Reducing a current account deficit requires a country to:

Which of the following is classified as a credit in the U.S.balance of payments?

Most economists contend that any reduction in the current account deficit is better achieved through increased national saving than through reduced domestic investment.

The value to American residents of income earned from overseas investments shows up in which account in the U.S.balance of payments?

If the U.S.dollar lost its position as the main reserve currency of the world,Americans would have to pay more for imported goods if the dollar depreciates when foreigners no longer buy dollars as they previously did when the dollar served as the reserve currency.

For the United States,merchandise trade has generally constituted the largest portion of its goods-and-services account.

In recent years,China has proposed an overhaul of the international monetary system in which the Special Drawing Right (SDR) would eventually replace the dollar as the world's main reserve currency.

Concerning a country's business cycle,____ is commonly associated with large or growing current account deficits:

The merchandise-trade account on the balance-of-payments statement is defined the same way as "net exports" which constitutes part of the nation's gross domestic product.