Exam 10: The Balance of Payments

Concerning a country's business cycle, rapid growth of production and employment is commonly associated with:

Which balance-of-payments item does not directly enter into the calculation of the U.S. gross domestic product?

For the first time since World War I, in 1985 the United States became a net international:

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

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.

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

In the balance-of-payments statement, statistical discrepancy is treated as part of the merchandise trade account because merchandise transactions are generally the most frequent source of error.

The value to American residents of income earned from overseas investments shows up in which account in the U.S. balance of payments?

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

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

When a country realizes a deficit on its current account:

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

On the balance-of-payments statement, a capital inflow can be likened to the import of goods and services.

In a country's balance of payments, which of the following transactions are $\underline { \text { debits } }$ ?

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.

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

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.

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

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

The role of ____ is to direct one nation's savings into another nation's investments: