Practice Final Exam F10 Answers

Practice Final Exam F10 Answers - ECO369 International...

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ECO369 International Economic Issues GVSU, Wei Sun Practice Final Exam Answers I. Multiple Choice Questions 1 2 3 4 5 6 7 8 9 10 11 12 1. In the 1999-2000, the high current account deficit in the U.S. was mainly fueled by a) excessive borrowing by the foreigners. b) excessive public sector borrowing. c) high domestic investment. d) high household savings rate 2. The Japanese government liquidates $10 million worth of its holdings of 30-year U.S. Treasury bonds in the open market and purchases an equivalent amount of U.S. corporate stocks with the sales receipt. How will this transaction affect the U.S. balance of payments? a) Credit investment income and debit private capital. b) Credit unilateral transfer and debit official capital. c) Credit private capital and debit official capital. d) Credit and debit official capital. 3. Toys R Us purchases $10 million worth of toys from China, payable in 3 months. How will this transaction be recorded in the U.S. balance of payments statement? a) Credit merchandise and debit private capital. b) Credit private capital and debit merchandise. c) Credit unilateral transfer and debit merchandise. d) Credit merchandise and debit unilateral transfer.
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Practice Final Exam F10 Answers - ECO369 International...

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