Chap019

Chap019 - Chapter 19 - The Balance-of-Payments Accounts...

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Chapter 19 - The Balance-of-Payments Accounts Chapter 19 The Balance-of-Payments Accounts Multiple Choice Questions 1. If a country has a current account deficit, which one of the following is true? a. Y - (C + I + G) > 0 b. S + (G - T) - I < 0 C . S < I + (G - T) d. C - Y > 0 2. Which one of the following items would be a "debit" in a country's balance-of-payments account? a. Exports of merchandise B . An increase in a domestic citizen's bank account in a foreign bank c. Increased holdings of domestic bonds by foreigners d. Exports of services 3. If a U.S. citizen gives $1,000 to a French citizen by writing a check on a New York bank for deposit to the French citizen's New York bank account, the credit item in the U.S. balance- of-payments accounts is __________ and the debit item is __________. a. "exports"; "unilateral transfers made" b. "increase in foreign short-term private assets in the United States"; "exports" C . "increase in foreign short-term private assets in the United States"; "unilateral transfers made" d. "unilateral transfers made"; "decrease in foreign short-term private assets in the e. United States" 4. Which one of the following "balances" in a balance-of-payments account has incorporated all private short-term asset changes before arriving at the measure of "balance?" a. Balance of trade b. Balance on current account c. "basic" balance D . Official reserve transactions balance 19-1
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Chapter 19 - The Balance-of-Payments Accounts 5. Suppose that a U.S. exporter sells goods to a foreign firm and receives payment by the
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Chap019 - Chapter 19 - The Balance-of-Payments Accounts...

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