Exam 9: Trade and the Balance of Payments

It is important to compare debt levels of low- and middle-income countries to exports because countries must earn foreign exchange in order to service their debts.

During the 1990s,which of the following did NOT occur?

Which of the following is an example of external debt for the United States?

Which of the following is an example of portfolio investment?

A sudden stop refers to a rapid slowing of capital inflows.

Based on Table 9.3,if values in the table are amended to reflect a net increase in U.S.foreign direct investment of 100,then the new balance for the capital account balance becomes

Total debt is more important in figuring out the ability of a country to service its debt than are debt to GDP and debt to export ratios.

What is the difference between the U.S.current account deficits of the 1980s and the 1990s?

Describe the technology transfer benefit of capital flows into low-income countries.

Capital controls are most often aimed at slowing or eliminating movements of

The current account balance of the United States began to deteriorate in

Which of the following transactions would be recorded in the financial account?

A current account deficit implies that

Typically,the most important determinant of private investment in an economy is

If a country runs a current account surplus and national private savings equals domestic investment,then the combined governmental accounts

National savings is important for all of the following reasons EXCEPT

Explain why current account deficits may or may not be harmful to a country.

Table 9.1 -Based on Table 9.1,the balance on the current account is

Use the U.S.current account balance and international investment position to explain the relationship between the current account balance and the international investment position.

The international investment position of the United States is negative.This means that