Chapter- 2 (International Flow of Funds).pdf - Chapter 2...

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Chapter 2 International Flow of Funds MULTIPLE CHOICE QUESTIONS 1. Which of the following is NOT a major subaccount of the Balance of Payments? A) the financial account B) the accounts payable C) the capital account D) the current account Answer: B
2. The balance of payments as applied to a course in international finance may be defined as: C
3. Balance of payment (BOP) data may be important for any of the following reasons: D
4. The balance of payments: C
5. Which of the following statements about the balance of payments is NOT true? A) The BOP is the summary statement of all international transactions between one country and all other countries. B) The BOP is a flow statement, summarizing all international transactions that occur across the geographic borders over a period of time, typically a year. C) Although the BOP must always balance in theory, in practice there are substantial imbalances as a result of statistical errors and misreporting of current account and financial account flows. D) All of the above are true. Answer: D
6. Which of the following is NOT a part of the Current Account of BOP? C
1 | P a g e ( International Finance; FINA- 250; Ch- 2; International Flow of Funds by Dr. Md. Izhar Alam )
2 | P a g e ( International Finance; FINA- 250; Ch- 2; International Flow of Funds by Dr. Md. Izhar Alam )

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