Question 1

When all of the debit or credit items in the balance-of-payments are combined

Accepted Answer

A)  merchandise imports equal merchandise exports. 
B)  capital imports equal capital exports. 
C)  services exports equal services imports. 
D)  the total surplus or deficit equals zero. 
A)  merchandise imports equal merchandise exports. 
B)  capital imports equal capital exports. 
C)  services exports equal services imports. 
D)  the total surplus or deficit equals zero.

Question 2

As the world's main reserve currency, the U.S.dollar is used throughout the world as a

Accepted Answer

A)  medium of exchange. 
B)  unit of account. 
C)  store of value. 
D)  All of these are correct. 
A)  medium of exchange. 
B)  unit of account. 
C)  store of value. 
D)  All of these are correct.

Question 3

Because the rest of the world has accepted dollars, the United States has faced virtually no (or minimal) constraint on its ability to realize current account deficits.

Accepted Answer

A) True 
 B)False

Question 4

That U.S.charities donate funds to combat starvation in Africa constitutes a debit transaction on the U.S.balance-of-payments.

Accepted Answer

A) True 
 B)False

Question 5

The balance of international indebtedness is a record of a country's international

Accepted Answer

A)  investment position over a period of time. 
B)  investment position at a fixed point in time. 
C)  trade position over a period of time. 
D)  trade position at a fixed point in time. 
A)  investment position over a period of time. 
B)  investment position at a fixed point in time. 
C)  trade position over a period of time. 
D)  trade position at a fixed point in time.

Question 6

Which of the following would call for an inflow of payments to the United States?

Accepted Answer

A)  American imports of German steel 
B)  gold flowing out of the United States 
C)  American unilateral transfers to less-developed countries 
D)  American firms selling insurance to British shipping companies 
A)  American imports of German steel 
B)  gold flowing out of the United States 
C)  American unilateral transfers to less-developed countries 
D)  American firms selling insurance to British shipping companies

Question 7

Concerning the balance-of-payments, a current account surplus means an excess of exports over imports of goods, services, investment income, and unilateral transfers.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following represents a problem with the SDR yuan becoming a reserve currency?

Accepted Answer

A)  The SDR does not include the U.S. dollar. 
B)  The SDR does not have an established settlement mechanism. 
C)  The SDR gets too much of its value from the Chinese yuan. 
D)  The SDR is only available to a small group of countries. 
A)  The SDR does not include the U.S. dollar. 
B)  The SDR does not have an established settlement mechanism. 
C)  The SDR gets too much of its value from the Chinese yuan. 
D)  The SDR is only available to a small group of countries.

When all of the debit or credit items in the balance-of-payments are combined

As the world's main reserve currency, the U.S.dollar is used throughout the world as a

Because the rest of the world has accepted dollars, the United States has faced virtually no (or minimal) constraint on its ability to realize current account deficits.

That U.S.charities donate funds to combat starvation in Africa constitutes a debit transaction on the U.S.balance-of-payments.

The balance of international indebtedness is a record of a country's international

Which of the following would call for an inflow of payments to the United States?

Concerning the balance-of-payments, a current account surplus means an excess of exports over imports of goods, services, investment income, and unilateral transfers.

Which of the following represents a problem with the SDR yuan becoming a reserve currency?

The International Economy and Globalization

Foundations of Modern Trade Theory Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance of Payments

Exchange Rate Systems and Currency Crises

Filters

Exam 10: The Balance of Payments

When all of the debit or credit items in the balance-of-payments are combined

As the world's main reserve currency, the U.S.dollar is used throughout the world as a

Because the rest of the world has accepted dollars, the United States has faced virtually no (or minimal) constraint on its ability to realize current account deficits.

That U.S.charities donate funds to combat starvation in Africa constitutes a debit transaction on the U.S.balance-of-payments.

The balance of international indebtedness is a record of a country's international

Which of the following would call for an inflow of payments to the United States?

Concerning the balance-of-payments, a current account surplus means an excess of exports over imports of goods, services, investment income, and unilateral transfers.

Which of the following represents a problem with the SDR yuan becoming a reserve currency?

The International Economy and Globalization

Foundations of Modern Trade Theory Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance of Payments

Exchange Rate Systems and Currency Crises

Filters