Exam 10: The Balance of Payments

Americans would have to pay more for imported goods if the U.S.dollar were to lose its position as the main reserve currency of the world and the dollar were to depreciate because foreigners no longer bought dollars as they did when the dollar served as the reserve currency.

Rapid growth of production and employment is commonly associated with large or growing trade surpluses and current account surpluses.

The U.S.unilateral transfers balance has consistently registered surplus in the past two decades.

Which of the following transactions would result in a credit for the United States?

Unlike the balance-of-payments, the balance of international indebtedness indicates the international

If General Electric Inc.pays dividends to its Canadian stockholders, this represents a

Concerning the U.S.balance-of-payments statement, throughout the past 30 years

Although a net debtor country may initially benefit from an inflow of savings from abroad, over the long run continued borrowing may result in growing dividend payments to foreigners and a drain on the debtor country's economic resources.

Which of the following is considered a capital inflow?

Current account transactions include direct foreign investment, purchases of foreign government securities, and commercial bank loans made abroad.

If U.S.investors purchase Treasury bills of the British government, this results in a

The United States would be a net creditor if the value of U.S.assets abroad exceeded the value of foreign assets in the United States.

An increase in import restrictions by the U.S.government tends to reduce a merchandise trade deficit.

That U.S.importers purchase bananas from Brazil constitutes a debit transaction on the U.S.balance-of-payments.

If Germany has invested over its history more in other countries than other countries have invested in Germany, then Germany is a

The balance-of-payments includes international transactions of households and businesses, but not government.

Debt (-) items in the balance-of-payments correspond to anything that

What are the components of the current account of the balance-of-payments?

The U.S.has a balance of trade deficit when its

Which balance-of-payments item does not directly enter into the calculation of the U.S.gross domestic product?