chapter 13 - problems

chapter 13 - problems - QUICK QUIZ 1. If more goods leave...

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QUICK QUIZ 1. If more goods leave China for the United States in a given year than leave the United States for China, we can conclude that (a) the United States has a current-account surplus and China a current-account deficit. (b) the United States has a merchandise trade deficit and China a surplus. (c) the United States has a bilateral merchandise trade surplus with China. (d) the United States has a bilateral merchandise trade deficit with China. (e) the United States has a bilateral current-account surplus with China. (f) the United States has a bilateral current-account deficit with China. 2. A flexible exchange rate guarantees that (a) a country's multilateral merchandise trade balance will be zero, but not necessarily the bilateral ones. (b) a country's bilateral merchandise trade balances will be zero, but not necessarily the multilateral one. (c) a country's current-account balance will be zero, but not necessarily its overall balance of payments. (d) a country's overall balance of payments will be zero, but not necessarily either its current-account balance or its capital-account balance. (e) a country's capital-account balance will be zero, but not necessarily its current-account balance. (f) a country's multilateral capital account will be in balance, but not necessarily its bilateral ones. 3. A country's balance-of-payments accounts provide (a) a measure of the country's output. (b) a measure of the country's economic well-being. (c) a record of transactions between the country and its residents with the rest of the world. (d) a record of changes in the country's exchange rate. (e) a way of computing the country's gross domestic product (GDP). (f) a measure of the country's economic progress relative to other countries. 4. The main accounts within a country's overall balance-of-payments accounts are (a) the current account, the capital account, and the official settlements account. (b) the merchandise account, the services account, and the unilateral transfers account. (c) the exchange rate account, the goods account, and the money account. (d) the spot account, the forward account, and the options account. (e) the devaluation account, the revaluation account, and the equilibrium account. (f) the unofficial settlements account and the official settlements account.
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5. Total debits always equal total credits in a country's balance-of-payments accounts because (a) the accounts are a double-entry bookkeeping system. (b) each debit entry generates an equal credit entry. (c) each credit entry generates an equal debit entry.
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chapter 13 - problems - QUICK QUIZ 1. If more goods leave...

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