Exam 10: The Balance of Payments

A deficit in the U.S.current account is offset by a surplus

For the first time since World War I, in 1985 the United States became a net international

On the balance-of-payments statements, merchandise imports are classified in the

Reducing a current account surplus requires a country to

Since the 1980s, the merchandise trade account of the U.S.balance-of-payments has registered deficit.

In recent years, most economists have argued that the U.S.dollar should be replaced by either the British pound or the Japanese yen as the world's main reserve currency.

When the United States imports goods and services from other countries, the United States

In recent years, China has proposed an overhaul of the international monetary system in which the special drawing right (SDR) would eventually replace the dollar as the world's main reserve currency.

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

The net debtor status that the United States achieved in its balance of international indebtedness by the mid-1980s reflected the continuous current account surplus that the United States attained in its balance-of-payments during the 1970s.

Referring to the balance-of-payments statement, an international transaction refers to the exchange of goods, services, and assets between residents of one country and those abroad.

To "balance" the U.S.balance-of-payments, U.S.Commerce Department statisticians employ

Services transactions on Canada's balance-of-payments statement would include Canadian ships transporting lumber to Japan, foreign tourists spending money in Canada, and Canadian engineers designing bridges in China.

All countries of the world can simultaneously have balance-of-payments deficits.

As the main reserve currency of the world, the Euro serves as a medium of exchange, unit of account, and store of value.

Because the balance-of-payments is a record of the economic transactions of a country over a period of time, it is a flow concept.

On the U.S.balance-of-payments statement, a capital inflow would occur if a Swiss resident purchases the securities of the U.S.government.

For the United States, a consequence of its current account deficit is a growing foreign ownership of the capital stock of the United States and a rising fraction of U.S.income that must be diverted abroad in the form of interest and dividends to foreigners.

In recent decades, the United States has been an example of

A positive balance on the goods and services account of the balance-of-payments indicates an excess of exports over imports, which must be added to the nation's gross domestic product.