Exam 10: The Balance-of-payments

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 unilateral-transfers balance registered a deficit of $40 billion.

Concerning the balance of payments,a current-account surplus means an excess of exports over imports of goods,services,investment income,and unilateral transfers.

The official reserve assets of the United States consist of special drawing rights (SDRs),foreign currencies,gold,and drawings at the International Monetary Fund.

On the U.S.balance-of-payments statement,a capital inflow would occur if a Swiss resident purchases the securities of the U.S.government.

The balance of payments statement records

Unlike the balance of payments,the balance of international indebtedness indicates the international:

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

Mary Smith,a resident of Denver Colorado,purchases a Swiss watch in Chicago.On the U.S.balance of payments statement,this transaction appears on the

By the mid-1980s,the United States had evolved from the status of a net-creditor nation to a net-debtor nation in its balance of international indebtedness.

For the U.S.balance of payments statement,the sum of debits and credits on all transactions will always be equal-that is,the balance of payments always balances.

For the United States,the largest component of its current account transactions consists of

In the past two decades,the U.S.services balance has generally registered surplus.

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 merchandise-trade balance registered a deficit of $50 billion.

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 payments data suggest that the United States was a "net demander" of $30 billion from the rest of the world.

Rapid growth of production and employment is commonly associated with large or growing trade surpluses and current account surpluses.

Because the United States dollar is the main reserve currency of the world,the U.S.government must pay higher interest rates to foreigners who purchase its securities.

Throughout the past 30 years,the U.S.balance-of-payments statement has indicated

What does a current account deficit mean?

If an American receives dividends from the shares of stock she or he owns in Toyota,Inc.,a Japanese firm,the transaction would be recorded on the U.S.balance of payments as a:

For the United States,a consequence of its current account deficit is a growing foreign ownership of the capital stock of the United States and a rising fraction of U.S.income that must be diverted abroad in the form of interest and dividends to foreigners.