Exam 10: the Balance of Payments

The U.S.unilateral-transfers balance has consistently registered surplus in the past two decades.

A positive balance on the goods-and-services account of the balance of payments indicates an excess of exports over imports which must be added to the nation's gross domestic product.

Unilateral transfers refer to two-sided transactions,reflecting the movement of goods and services in one direction with corresponding payments in the other direction.

The United States would be a "net creditor" if the value of U.S.assets abroad exceeded the value of foreign assets in the United States.

The balance of payments includes international transactions of households and businesses,but not government.

For the United States,a consequence of its current account deficit is a growing foreign ownership of the capital stock of the United States and a rising fraction of U.S.income that must be diverted abroad in the form of interest and dividends to foreigners.

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

Often,countries realizing rapid economic growth rates possess long-run current account deficits.

When a country realizes a deficit on its current account:

Table 10.2. International Investment Position of the United States -For the first time since World War I,in 1985 the United States became a net international:

Which of the following indicates the international investment position of a country at a given moment in time?

Table 10.2. International Investment Position of the United States -Consider Table 10.2.The U.S.balance of international indebtedness suggests that the United States is a net:

On the U.S.balance-of-payments statement,a capital inflow would occur if a Swiss resident purchases the securities of the U.S.government.

Which of the following is considered a capital inflow?

A country that is a net international debtor initially experiences:

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 goods-and-services balance registered a surplus of $50 billion.

Referring to the balance-of-payments statement,an international transaction refers to the exchange of goods,services,and assets between residents of one country and those abroad.

Concerning a country's business cycle,____ is commonly associated with large or growing current account deficits:

The net-debtor status,that the United States achieved in its balance of international indebtedness by the mid-1980s,reflected the continuous current-account surplus that the United States attained in its balance of payments during the 1970s.