Exam 10: The Balance of Payments

Rapid growth of production and employment is commonly associated with large or growing trade surpluses and current account surpluses.

Table 10.1.U.S.International Transactions -Referring to Table 10.1,the goods and services balance equals:

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

If the United States government sells military hardware to Saudi Arabia,the transaction would be recorded on the U.S.balance of payments as a:

When a country realizes a deficit on its current account:

In the past two decades,the U.S.services balance has generally registered surplus.

The current account of the U.S.balance of payments does not include:

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

When all of the debit or credit items in the balance of payments are combined:

All of the following are credit items in the balance of payments,except:

If Toyota Inc.of Japan builds an automobile assembly plant in the United States,the Japanese capital account would register an outflow.

Because the balance of payments is a record of the economic transactions of a country over a period of time,it is a "flow" concept.