Exam 10: the Balance of Payments

Concerning the balance of payments,a current-account surplus means an excess of exports over imports of goods,services,investment income,and unilateral transfers.

On the balance-of-payments statements,merchandise imports are classified in the:

Because the balance of payments utilizes double-entry accounting,merchandise exports will always be in balance with merchandise imports.

The value to American residents of income earned from overseas investments shows up in which account in the U.S.balance of payments?

U.S.military aid granted to foreign countries is entered in the:

If an American receives dividends from the shares of stock she or he owns in Toyota,Inc.,a Japanese firm,the transaction would be recorded on the U.S.balance of payments as a:

That German investors collect interest income on their holdings of U.S.Treasury bills constitutes a credit transaction on the U.S.balance of payments.

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 current-account balance registered a surplus of $30 billion.

Reducing a current account surplus requires a country to:

To reduce a current account deficit,a country should either decrease the budget deficit of its government or reduce investment spending relative to saving.

The balance of international indebtedness is a record of a country's international:

Current-account transactions include direct foreign investment,purchases of foreign government securities,and commercial bank loans made abroad.

A current account deficit for the United States necessarily reduces the standard of living for American households.

The burden of a current account deficit would be the least if a nation uses what it borrows to finance:

What are the components of the current account of the balance of payments?

In a country's balance of payments,which of the following transactions are debits?

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

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

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 merchandise-trade balance registered a deficit of $50 billion.

On the balance-of-payments statement,dividend and interest income are classified as capital-account transactions.