The united states issues a 10000 debt forgiveness to

7) The United States issues a $10,000 debt forgiveness to Argentina. How is this accounted for in the
balance of payments?
A) financial account, U.S. asset import
B) current account, Argentina transfer payment
C) current account, U.S. service export
D) capital account, U.S. transfer payment
8) You travel to Paris and pay for a $100 dinner with your credit card. How is this accounted for in the

balance of payments?
9) Which of these answers defines the importance of International investment position correctly?
10) Economists closely follow the current account balance because they believe it can provide
information on the future movement of
Workshop 4. Foreign exchange market
1) How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British
pounds if the exchange rate is 1.25 dollars per one British pound?
A) 50 dollars
B) 70 dollars
C) 62.5 dollars
D) 40 British pounds
2) Which one of the following statements is the MOST accurate?
3) A(n) ________ of a nation's currency will cause imports to ________ and exports to ________, all
other things held constant.