Hw5 - ECN 162 International Economic Relations Ina...

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1 ECN 162 International Economic Relations University of California - Davis Ina Simonovska Fall 2009 Assignment 5 (Maximum Score = 100) Due: Tuesday, November 24, at the beginning of class. Multiple-Choice Questions Each question is worth 3 points. Explanation is not required. 1. A balance of trade deficit occurs when a country A) exports more goods than it imports. B) buys more goods from the rest of the world than it sells. C) buys more stocks and bonds from the rest of the world than it sells. D) both (b) and (c). 2. Which of the following transactions is a debit in the current account? A) export of merchandise B) export of services C) food gift to foreigners D) foreign bond purchase 3. is necessary to "balance" the BOP statement. A) Reserve inflow B) Statistical discrepancy C) Debit transaction D) Credit transaction 4. According to the National Income Accounting Identity, the current account is equal to A) S-I B) C+I+G+X C) I+X D) T-G 5. Which of the following factors is not part of the CA of a country? A) exports B) imports C) unilateral transfers D) Social Security contributions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
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2 6. The term net unilateral transfers refers to: A) income earned abroad by a nation's own workers minus income paid to foreign nonresident workers. B) gifts, charitable contributions, and foreign aid. C) gifts, charitable contributions, and aid to foreign residents minus the same types of transfers to residents of the home nation. D) government subsidies to home corporations minus the same government subsidies to international corporations. 7. The difference (balance) between asset exports and asset imports is called: A) the current account. B) the balance of debt. C) capital remainder flows. D) the balance on the financial account. Consider the following hypothetical information on the National Income and Product Account for the United States. Table: U.S. National Accounts Data
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This note was uploaded on 02/24/2010 for the course ECN ECN 162 taught by Professor Inna during the Winter '09 term at UC Davis.

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Hw5 - ECN 162 International Economic Relations Ina...

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