Exam 10: the Balance of Payments

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:

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

If a country realizes a current-account deficit in its balance of payments,it becomes a net supplier of funds to the rest of the world.

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

That U.S.importers purchase bananas from Brazil constitutes a debit transaction on the U.S.balance of payments.

The merchandise-trade account on the balance-of-payments statement is defined the same way as "net exports" which constitutes part of the nation's gross domestic product.

Although the United States has realized merchandise trade deficits since the early 1970s,its goods-and-services balance has always registered surplus.

The U.S.balance of trade is determined by:

Table 10.1 gives hypothetical figures for U.S. International Transactions. Table 10.1. U.S. International Transactions -Referring to Table 10.1,the current account balance equals:

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

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

By the mid-1980s,the United States had evolved from the status of a net-creditor nation to a net-debtor nation in its balance of international indebtedness.

Table 10.3 shows hypothetical transactions, in billions of U.S. dollars, that took place during a year. Table 10.3. International Transactions of the United States -Refer to Table 10.3.The payments data suggest that the United States was a "net demander" of $30 billion from the rest of the world.

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

The role of ____ is to direct one nation's savings into another nation's investments:

Concerning the balance of payments,the goods-and-services balance is commonly referred to as the "trade balance" by the news media.

Reducing a current account deficit requires a country to:

According to researchers at the Federal Reserve,the loss of jobs associated with a deficit in the current account tends to be:

Which of the following would call for inpayments to the United States?

That U.S.charities donate funds to combat starvation in Africa constitutes a debit transaction on the U.S.balance of payments.