Question 1

Over the last two decades the surplus on U.S. services trade has typically been ________ the deficit on U.S. goods trade.

Accepted Answer

A) greater than 
B) equal to 
C) less than 
D) The relationship is constantly shifting from greater than to less than. 
A) greater than 
B) equal to 
C) less than 
D) The relationship is constantly shifting from greater than to less than.

Question 2

The BOP must be in balance but the current account need not be.

Accepted Answer

A) True 
B) False 
A) True 
B) False

Question 3

Portfolio investment is capital invested in activities that are ________ rather than made for ________.

Accepted Answer

A) short term; the long term 
B) long term; profit 
C) profit motivated; control 
D) control motivated; profit 
A) short term; the long term 
B) long term; profit 
C) profit motivated; control 
D) control motivated; profit

Question 4

Which of the following is NOT part of the Financial Account of the BOP?

Accepted Answer

A) Net foreign direct investment. 
B) Net import/export of services. 
C) Net portfolio investment. 
D) Other Financial items. 
A) Net foreign direct investment. 
B) Net import/export of services. 
C) Net portfolio investment. 
D) Other Financial items.

Question 5

The authors identify a tip for understanding BOP accounting. They recommend that you "follow the cash flow."

Accepted Answer

A) True 
B) False 
A) True 
B) False

Question 6

An excess of merchandise exports over merchandise imports results in a balance of trade deficit.

Accepted Answer

A) True 
B) False 
A) True 
B) False

Question 7

Which of the following is NOT likely to occur in the quantity adjustment phase of the J-Curve adjustment path ?

Accepted Answer

A) Imports become relatively more expensive. 
B) Exports become relatively less expensive. 
C) The balance of trade gets worse. 
D) All of the above are true. 
A) Imports become relatively more expensive. 
B) Exports become relatively less expensive. 
C) The balance of trade gets worse. 
D) All of the above are true.

Question 8

International debt security purchases and sales are defined as portfolio investments for financial account purposes because by definition debt securities do not provide the buyer with ownership or control.

Accepted Answer

A) True 
B) False 
A) True 
B) False

Question 9

Which of the following is NOT a part of the Current Account of BOP?

Accepted Answer

A) Net export/import of goods. 
B) Balance of Trade. 
C) Net portfolio investment. 
D) Net export/import of services. 
A) Net export/import of goods. 
B) Balance of Trade. 
C) Net portfolio investment. 
D) Net export/import of services.

Over the last two decades the surplus on U.S. services trade has typically been ________ the deficit on U.S. goods trade.

The BOP must be in balance but the current account need not be.

Portfolio investment is capital invested in activities that are rather than made for .

Which of the following is NOT part of the Financial Account of the BOP?

The authors identify a tip for understanding BOP accounting. They recommend that you "follow the cash flow."

An excess of merchandise exports over merchandise imports results in a balance of trade deficit.

Which of the following is NOT likely to occur in the quantity adjustment phase of the J-Curve adjustment path ?

International debt security purchases and sales are defined as portfolio investments for financial account purposes because by definition debt securities do not provide the buyer with ownership or control.

Which of the following is NOT a part of the Current Account of BOP?

Globalization and the Multinational Enterprise

Financial Goals and Corporate Governance

The International Monetary System

Current Multinational Financial Challenges: the Credit Crisis of 2007-2009

The Foreign Exchange Market

International Parity Conditions

Foreign Currency Derivatives

Interest Rate and Currency Swaps

Foreign Exchange Rate Determination and Forecasting

Transaction Exposure

Operating Exposure

Translation Exposure

The Global Cost and Availability of Capital

Sourcing Equity Globally

Sourcing Debt Globally

International Portfolio Theory and Diversification

Foreign Direct Investment Theory and Political Risk

Multinational Capital Budgeting

Multinational Tax Management

Working Capital Management

International Trade Finance

Filters

Exam 4: The Balance of Payments

Over the last two decades the surplus on U.S. services trade has typically been ________ the deficit on U.S. goods trade.

The BOP must be in balance but the current account need not be.

Portfolio investment is capital invested in activities that are ________ rather than made for ________.

Which of the following is NOT part of the Financial Account of the BOP?

The authors identify a tip for understanding BOP accounting. They recommend that you "follow the cash flow."

An excess of merchandise exports over merchandise imports results in a balance of trade deficit.

Which of the following is NOT likely to occur in the quantity adjustment phase of the J-Curve adjustment path ?

International debt security purchases and sales are defined as portfolio investments for financial account purposes because by definition debt securities do not provide the buyer with ownership or control.

Which of the following is NOT a part of the Current Account of BOP?

Globalization and the Multinational Enterprise

Financial Goals and Corporate Governance

The International Monetary System

Current Multinational Financial Challenges: the Credit Crisis of 2007-2009

The Foreign Exchange Market

International Parity Conditions

Foreign Currency Derivatives

Interest Rate and Currency Swaps

Foreign Exchange Rate Determination and Forecasting

Transaction Exposure

Operating Exposure

Translation Exposure

The Global Cost and Availability of Capital

Sourcing Equity Globally

Sourcing Debt Globally

International Portfolio Theory and Diversification

Foreign Direct Investment Theory and Political Risk

Multinational Capital Budgeting

Multinational Tax Management

Working Capital Management

International Trade Finance

Filters

Portfolio investment is capital invested in activities that are rather than made for .