Exam 10: The Balance-of-payments

A deficit in the U.S.current account is offset by a surplus

The world economy is currently in approximate balance concerning consumption levels,savings rates,and fiscal deficits of advanced countries and emerging countries.

If the current account of the balance of payments registers a deficit,the capital account registers a surplus,and vice versa.

The U.S.unilateral-transfers balance has consistently registered surplus in the past two decades.

The value of direct investment by Ford Motor Co.in Canada is included in the U.S.

If Bank of America receives repayment for a loan it made to a Mexican firm,the U.S.capital account would register an inflow.

To "balance" the U.S.balance of payments,U.S.Commerce Department statisticians employ

Concerning the balance of payments,the goods-and-services balance is commonly referred to as the "trade balance" by the news media.

If a resident of Japan purchases a ticket from American Airlines,paying by a personal check,which entries result in the balance-of-payments accounts of Japan or the United States?

Although a net-debtor country may initially benefit from an inflow of savings from abroad,over the long run continued borrowing results in growing dividend payments to foreigners and a drain on the debtor-country's economic resources.

If Germany has invested over its history more in other countries than other countries have invested in Germany,then Germany is a

All countries of the world can simultaneously have balance-of-payments deficits.

The current account of the United States includes all of the following except

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 services balance registered a surplus of $100 billion.

On the balance-of-payments statements,merchandise imports are classified in the:

A country that is a net international debtor initially experiences:

Credit items on the U.S.balance of payments statement result in

The "goods and services" account of the balance of payments shows the monetary value of international flows associated with transactions in goods,services,and unilateral transfers.

If an American purchases a ticket from Scandinavian Airlines,paying by a personal check,which entries result in the balance-of-payments accounts of Norway or the United States?

Table 10.1 gives hypothetical figures for U.S.International Transactions. Table 10.1.U.S.International Transactions -Referring to Table 10.1,the goods and services balance equals: