Exam 10: The Balance of Payments

Suppose an American resident earns $100,000 on a financial investment in China.This would be recorded in the __________ because ___________.

All of the following are credit items in the balance-of-payments, except

That German investors collect interest income on their holdings of U.S.Treasury bills constitutes a credit transaction on the U.S.balance-of-payments.

Throughout the past 30 years, the U.S.balance-of-payments statement has indicated both

Concerning the U.S.balance-of-payments statement, the sum of debits and credits on all transactions will always

The ______ is currently the main reserve currency of the global trading and financial system

If the U.S.faces a balance-of-payments deficit on the current account, it must run a surplus on

The merchandise trade account on the balance-of-payments statement is defined the same way as net exports, which constitutes part of the nation's gross domestic product.

Over its history, suppose that France has borrowed more from the rest of the world than it has lent to the rest of the world.This means that France

If an American receives dividends from the shares of stock she or he owns in Toyota, Inc., a Japanese firm, the transaction would be recorded on the U.S.balance-of-payments as a

In the balance-of-payments statement, statistical discrepancy is treated as part of the merchandise trade account because merchandise transactions are generally the most frequent source of error.

Which of the following is classified as a credit in the U.S.balance-of-payments?

A surplus on Germany's goods and services balance indicates that Germany has sold more goods and services to foreigners than it has bought from them over a one-year period.

A credit transaction would appear on the balance-of-payments as a result of

The _____ tabulates the U.S.balance-of-payments.

If a resident of Japan purchases an insurance policy from the U.S.insurance company Progressive, which of the following entries would be the result?

Germany's position as a ___________ is because it ________.

On the U.S.balance-of-payments statement, the following transactions are credits, leading to the receipt of dollars from foreigners: merchandise exports, transportation receipts, income received from investments abroad, and investments in the United States by foreign residents.

A negative balance in the capital and financial account suggests that a country

Greece's position as a ___________ is because it ________.