Exam 13: Balance of Payments

The largest trading partner of the United States is

A French investor sells $200,000 worth of stock in a U.S.company and puts the proceeds into a bank in the United States.In the U.S.balance of payments,the sale of stock is recorded as a ______ to the ________ account;the bank deposit is recorded as a a ______ to the ________ account.

The payment of a dividend by an American company to a foreign stockholder represents:

Which of the following is a debit?

What is the international investment position and how has it changed for the United States over the last fifty years.

Over the last fifty years the current account balance of the Untied States has

What is the difference between a credit transaction and a debit transaction in the balance of payments?

When a U.S.firm imports goods to be paid in three months the U.S.credits:

(a)If,for every debit or credit in the balance of payments,an offsetting credit or debit,respectively,of an equal amount is entered,how can a nation have a deficit or a surplus in the balance of payments? (b)How is a deficit of a surplus in the balance of payments measured? (c)Why are the concepts and measurement of deficit or surplus not appropriate under a flexible exchange rate system? (d)What is the difference between a disequilibrium and a deficit in the balance of payments?

When the U.S.ships food aid to a developing nation,the U.S.debits:

When the resident of a foreign nation (1)sells a U.S.stock and (2)deposits the proceeds in a U.S.bank,the U.S.:

Which is not an official reserve asset of the U.S.?

Accommodating items are:

The U.S.government gives $1,000,000 to Somalia.In the U.S.balance of payments,the gift of funds is recorded as a ______ to the ________ account.and as a ______ to the ________ account.

Which of the following is NOT an explanation for the growth of the trade deficit in the United States over the last thirty years

Capital inflows:

From the U.S.point of view,drawing on (reducing)foreign bank balances in a New York bank represents a:

When a U.S.resident (1)purchases foreign treasury bills and pays by (2)drawing down his bank balances abroad,the U.S.:

For the following set of international transactions with the United States,indicate in what specific category and account in the United States balance of payments each transaction would be included and whether it is a credit or debit. Kodak exchanges € 50,000 received from export sales for dollars at the Federal Reserve bank of New York.

Which of the following is false?