Exam 10: The Balance-of-payments

If the Special Drawing Right (SDR) was used as an international currency,the cost of doing business would likely go up for firms and investors.This is because another step would be added to international transactions,as buyers and sellers would have to convert their local currencies into SDRs.

Table 10.1 gives hypothetical figures for U.S.International Transactions. Table 10.1.U.S.International Transactions -Referring to Table 10.1,the current account balance equals:

A Canadian lumber company purchases a saw mill in the state of Washington.On the U.S.balance of payments statement,this transaction appears in the

Table 10.3 shows hypothetical transactions,in billions of U.S.dollars,that took place during a year. Table 10.3.International Transactions of the United States -Refer to Table 10.3.The current-account balance registered a surplus of $30 billion.

In recent years,the two largest holders of U.S.government securities have been

The United States would be a "net creditor" if the value of U.S.assets abroad exceeded the value of foreign assets in the United States.

Since the 1970s,the merchandise trade account of the U.S.balance of payments has registered deficit.

If General Electric Inc.pays dividends to its Canadian stockholders,this represents a

If the United States is a net borrower-from or lender-to the rest of the world,this is best indicated by the U.S.

The current account of the U.S.balance of payments does not include:

Concerning the U.S.balance of payments statement,the sum of debits and credits on all transactions will always

An increase in import restrictions by the U.S.government tends to promote a merchandise-trade surplus.

When the United States imports goods and services from other countries,the United States

Debt (-) items in the balance of payments correspond to anything that:

All of the following are debit items in the balance of payments,except:

That U.S.importers purchase bananas from Brazil constitutes a debit transaction on the U.S.balance of payments.

How do we measure the international investment position of the United States at any point in time? How did the U.S.become a net debtor nation so rapidly?

If the United States has a negative balance on its current account,it

Often,countries realizing rapid economic growth rates possess long-run current account deficits.

Unilateral transfers refer to two-sided transactions,reflecting the movement of goods and services in one direction with corresponding payments in the other direction.