Exam 10: The Balance of Payments

Because the United States continues to run significant ___________, some have argued that ____________ should be a reserve currency, because it is _______________.

A Canadian lumber company purchases a sawmill in the state of Washington.On the U.S.balance-of-payments statement, this transaction appears in the

Mary Smith, a resident of Denver, Colorado, purchases a Swiss watch in Chicago.On the U.S.balance-of-payments statement, this transaction appears on the

How do we measure the international investment position of the United States at any point in time? How did the U.S.become a net debtor nation so rapidly?

A country that is a net international debtor initially experiences

The world economy is currently in approximate balance concerning consumption levels, savings rates, and fiscal deficits of advanced countries and emerging countries.

On the U.S.balance-of-payments, the following transactions are debits, leading to payments to foreigners: merchandise imports, travel expenditures, gifts to foreign residents, and overseas investments by U.S.residents.

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

In 2016, the Chinese yuan replaced the U.S.dollar as the main reserve currency of the world.

The role of ________ is to direct one nation's savings into another nation's investments.

The official reserve assets of the United States consist of special drawing rights (SDRs), foreign currencies, gold, and drawings at the International Monetary Fund.

The current account of the U.S.balance-of-payments does not include

In recent decades, the U.S.has generated a ___________in its ________account.

Reducing a current account deficit requires a country to

If Bank of America receives repayment of a loan (the principle) it made to a Mexican firm, the U.S.capital account would register an inflow.

For the United States, merchandise trade has generally constituted the largest portion of its goods and services account.

What does a current account deficit mean?

Which of the following represents a possible benefit of using a cryptocurrency like Bitcoin as a reserve currency?

In recent years, ______ has been the world's largest international debtor

The capital account of the balance-of-payments includes private sector transactions as well as official settlements transactions of the home country's central bank.