Question 1

Which of the following is a credit in the U.S. current account?

Accepted Answer

A) ​A U.S.consumer buys a TV made in Malaysia. 
B) ​Singapore Airlines buys a jumbo jet made in the United States. 
C) ​British investors purchase U.S.government bonds. 
D) ​An American citizen flies to Lithuania on the Lithuanian Airlines. 
A) ​A U.S.consumer buys a TV made in Malaysia. 
B) ​Singapore Airlines buys a jumbo jet made in the United States. 
C) ​British investors purchase U.S.government bonds. 
D) ​An American citizen flies to Lithuania on the Lithuanian Airlines.

Question 2

The balance of trade records information about:

Accepted Answer

A) ​purchases of U.S.merchandise exports by foreigners. 
B) ​purchases of foreign financial assets by Americans. 
C) ​American purchases of foreign services while traveling abroad. 
D) ​errors and omissions. 
A) ​purchases of U.S.merchandise exports by foreigners. 
B) ​purchases of foreign financial assets by Americans. 
C) ​American purchases of foreign services while traveling abroad. 
D) ​errors and omissions.

Question 3

If your aunt in Italy lends you $5,000 to complete your American education, this will be entered on the U.S. balance of payments account as a:

Accepted Answer

A) ​debit (-). 
B) ​credit (+). 
C) ​non-entry, since it will affect Italy's payments but not those of the United States. 
D) ​devaluation, since the net value of the American capital stock will be reduced by the amount of your debt. 
A) ​debit (-). 
B) ​credit (+). 
C) ​non-entry, since it will affect Italy's payments but not those of the United States. 
D) ​devaluation, since the net value of the American capital stock will be reduced by the amount of your debt.

Question 4

Under a system of flexible exchange rates, an increase in the foreign demand for the U.S. dollar in the foreign exchange market will cause the:

Accepted Answer

A) ​dollar to appreciate. 
B) ​dollar to depreciate. 
C) ​U.S.trade deficit to decrease. 
D) ​U.S.inflation rate to increase. 
A) ​dollar to appreciate. 
B) ​dollar to depreciate. 
C) ​U.S.trade deficit to decrease. 
D) ​U.S.inflation rate to increase.

Question 5

Which of the following would increase the demand for U.S. dollars in the foreign exchange market?

Accepted Answer

A) ​the spending of U.S.tourists in France 
B) ​the purchase of Japanese automobiles by American consumers 
C) ​the sale of U.S.automobiles to French consumers 
D) ​provision of bilateral trade agreements 
A) ​the spending of U.S.tourists in France 
B) ​the purchase of Japanese automobiles by American consumers 
C) ​the sale of U.S.automobiles to French consumers 
D) ​provision of bilateral trade agreements

Question 6

The current exchange rate system is effectively a dirty float system.

Accepted Answer

A) True 
 B)False

Which of the following is a credit in the U.S. current account?

The balance of trade records information about:

If your aunt in Italy lends you $5,000 to complete your American education, this will be entered on the U.S. balance of payments account as a:

Under a system of flexible exchange rates, an increase in the foreign demand for the U.S. dollar in the foreign exchange market will cause the:

Which of the following would increase the demand for U.S. dollars in the foreign exchange market?

The current exchange rate system is effectively a dirty float system.

The Role and Method of Economics

Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Filters

Exam 21: Financial Markets, Saving, and Investment

Which of the following is a credit in the U.S. current account?

The balance of trade records information about:

If your aunt in Italy lends you $5,000 to complete your American education, this will be entered on the U.S. balance of payments account as a:

Under a system of flexible exchange rates, an increase in the foreign demand for the U.S. dollar in the foreign exchange market will cause the:

Which of the following would increase the demand for U.S. dollars in the foreign exchange market?

The current exchange rate system is effectively a dirty float system.

The Role and Method of Economics

Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Filters