Exam 10: the Balance of Payments

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

Reducing a current account deficit requires a country to:

Concerning the U.S.balance of payments,which account is defined in essentially the same way as the net export of goods and services,which comprises part of the country's gross domestic product?

If Bank of America receives repayment for a loan it made to a Mexican firm,the U.S.capital account would register an inflow.

Most economists contend that any reduction in the current account deficit is better achieved through increased national saving than through reduced domestic investment.

If the U.S.faces a balance-of-payments deficit on the current account,it must run a surplus on:

Since the 1970s,the merchandise trade account of the U.S.balance of payments has registered deficit.

The official reserve assets of the United States consist of holdings of gold and foreign corporate securities.

If the current account of the balance of payments registers a deficit,the capital account registers a surplus,and vice versa.

The U.S.has a balance of trade deficit when its:

Unilateral transfers consist of private-sector transfers,such as church contributions to alleviate starvation in Africa,as well as governmental transfers,such as foreign aid.

Services transactions on Canada's balance-of-payments statement would include Canadian ships transporting lumber to Japan,foreign tourists spending money in Canada,and Canadian engineers designing bridges in China.

The "goods and services" account of the balance of payments shows the monetary value of international flows associated with transactions in goods,services,and unilateral transfers.

The capital account of the balance of payments includes private-sector transactions as well as official-settlements transactions of the home country's central bank.

The balance of payments refers to the stock of trade and investment transactions that exists at a particular point in time.

If a country consistently realizes a current-account surplus in its balance of payments,it likely will become a "net debtor" in its balance of international indebtedness.

Debt (-)items in the balance of payments correspond to anything that:

On the balance-of-payments statement,a capital inflow can be likened to the import of goods and services.

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 unilateral-transfers balance registered a deficit of $40 billion.

Which of the following is classified as a credit in the U.S.balance of payments?