Question 1

If a country has a large deficit in its current account

Accepted Answer

A) it has a large surplus in its financial account. 
B) it exports more than it imports. 
C) it is a net creditor to the rest of the world. 
D) None of the above are necessarily true. 
A) it has a large surplus in its financial account. 
B) it exports more than it imports. 
C) it is a net creditor to the rest of the world. 
D) None of the above are necessarily true.

Question 2

Security purchases in the United States by foreigners is

Accepted Answer

A) a credit item in the current account. 
B) a debit item in the capital account. 
C) a credit item in the capital account. 
D) a debit item in the current account. 
A) a credit item in the current account. 
B) a debit item in the capital account. 
C) a credit item in the capital account. 
D) a debit item in the current account.

Question 3

In the BOP,travel and tourism are included in

Accepted Answer

A) unilateral transfers. 
B) the capital account. 
C) the merchandise account. 
D) the services account. 
A) unilateral transfers. 
B) the capital account. 
C) the merchandise account. 
D) the services account.

Question 4

The U.S.Balance of Payments is constructed by

Accepted Answer

A) the U.S. Department of Labor. 
B) the U.S. Department of Agriculture. 
C) the U.S. Department of Commerce. 
D) the Council of Economic Advisers to the President. 
A) the U.S. Department of Labor. 
B) the U.S. Department of Agriculture. 
C) the U.S. Department of Commerce. 
D) the Council of Economic Advisers to the President.

Question 5

With floating exchange rates,BOP equilibrium is restored by

Accepted Answer

A) trade restrictions. 
B) earnings from foreign investments. 
C) exchange rate changes. 
D) All of the above. 
A) trade restrictions. 
B) earnings from foreign investments. 
C) exchange rate changes. 
D) All of the above.

Question 6

How are the current account and the financial account related?

Accepted Answer

These two accounts are inversely related

Question 7

Large current account deficits imply large financial account surpluses.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following transactions is a debit in the US current account?

Accepted Answer

A) Export of merchandise 
B) Export of services 
C) Gifts to foreigners 
D) Foreign bond purchases 
A) Export of merchandise 
B) Export of services 
C) Gifts to foreigners 
D) Foreign bond purchases

If a country has a large deficit in its current account

Security purchases in the United States by foreigners is

In the BOP,travel and tourism are included in

The U.S.Balance of Payments is constructed by

With floating exchange rates,BOP equilibrium is restored by

How are the current account and the financial account related?

Large current account deficits imply large financial account surpluses.

Which of the following transactions is a debit in the US current account?

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters

Exam 11: The Balance of Payments

If a country has a large deficit in its current account

Security purchases in the United States by foreigners is

In the BOP,travel and tourism are included in

The U.S.Balance of Payments is constructed by

With floating exchange rates,BOP equilibrium is restored by

How are the current account and the financial account related?

Large current account deficits imply large financial account surpluses.

Which of the following transactions is a debit in the US current account?

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters