Exam 10: The Balance-of-payments

The official reserve assets of the United States consist of holdings of gold and foreign corporate securities.

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

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 "net exports" component of the U.S.gross domestic product registered $-110 billion.

Table 10.2.International Investment Position of the United States -Consider Table 10.2.The U.S.balance of international indebtedness suggests that the United States is a net:

As the main reserve currency of the world,the Euro serves as a medium of exchange,unit of account,and store of value.

Most economists belief that in the 1980s,a massive outflow of capital caused a current account deficit for the United States.

What are the components of the current account of the balance of payments?

Which of the following would call for inpayments to the United States?

When all of the debit or credit items in the balance of payments are combined:

If U.S.investors purchase Treasury Bills of the British government,this results in a

To reduce a current account deficit,a country should either decrease the budget deficit of its government or reduce investment spending relative to saving.

Concerning the balance of payments statement,the ______ indicates the receipts from exports of goods and services sold overseas,the payments for imports of goods and services from overseas,unilateral transfers (net),and income receipts and payments (net)

A current account deficit for the United States necessarily reduces the standard of living for American households.

A debit in the U.S.current account would be represented by

Current-account transactions include direct foreign investment,purchases of foreign government securities,and commercial bank loans made abroad.

Which of the following indicates the international investment position of a country at a given moment in time?

The balance of international indebtedness is a record of a country's international:

In 2016,the Chinese yuan replaced the U.S.dollar as the main reserve currency of the world.

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 goods-and-services balance registered a surplus of $50 billion.

Adopting the Special Drawing Right (SDR) as a reserve currency might possibly occur if the United States was to operate continuous bad economic policy in the form of