Exam 10: The Balance-of-payments

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

If the U.S.faces a balance-of-payments deficit on the current account,it must run a surplus on:

The capital account of the balance of payments includes private-sector transactions as well as official-settlements transactions of the home country's central bank.

Concerning the U.S.balance of payments statement,throughout the past 30 years

If Japan lends more to the rest of the world than it borrows from the rest of the world,Japan is a

If the U.S current account balance is negative

Referring to the balance-of-payments statement,an international transaction refers to the exchange of goods,services,and assets between residents of one country and those abroad.

U.S.military aid granted to foreign countries is entered in the:

In recent years,most economists have argued that the U.S.dollar should be replaced by either the British pound or the Japanese yen as the world's main reserve currency.

Although the United States has realized merchandise trade deficits since the early 1970s,its goods-and-services balance has always registered surplus.

Concerning the balance of payments,a current-account deficit results in a worsening of a country's net foreign investment position.

Concerning the balance of international indebtedness,when is a country a net creditor or a net debtor?

The U.S.has a balance of trade deficit when its:

A positive balance in the capital and financial account suggests that a country

Credit (+) items in the balance of payments correspond to anything that:

A surplus on Germany's goods-and-services balance indicates that Germany has sold more goods and services to foreigners than it has bought from them over a one-year period.

On the U.S.balance of payments,the following transactions are debits,leading to payments to foreigners: merchandise imports,travel expenditures,gifts to foreign residents,and overseas investments by U.S.residents.

One problem of adopting the Special Drawing Right (SDR) as a reserve currency is that the SDR is backed by nothing other than the good faith and credit of the International Monetary Fund (IMF); that is,the IMF produces nothing to support the value of the SDR.

The ______ is currently the main reserve currency of the global trading and financial system

A credit transaction would appear on the balance of payments as a result of