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“The balance of payments is always balanced.” Discuss.
Answer: True. Every international transaction automatically enters the balance of payments twice, once as a credit and once as a debit.Current account + financial account + capital...
cyxssbIn terms of the current account,
A.a 2100 million dollar credit. B. a 2100 million dollars suplus.C.a 600 million dollar deficit. D. a 900 million dollar deficit.Answer: C
cyxssbThe balance on current account includes
The balance on current account includes which of the following:exports minus imports of goods and servicesincome receipts on US assets abroad minus income payment on foreign assets...
cyxssbWhich of the following are true in terms
Which of the following are true in terms of the current account balance?A.Monetary expansion increases the current accountB.Monetary expansion decreases the current accountC.Fiscal...
cyxssbA country’s current account
A.balance equals the change in its net foreign wealth.B.balance equals the change in its foreign wealth.C.surplus equals the change in its foreign wealth.D.deficit equals the chang...
cyxssbBy external balance, most economists mean
A.avoiding excessive imbalances in internationalB.a balance between exports andC.a balance between trade account and serviceD.a fixed exchangeE.None of theAnswer: A
cyxssbwhat happens when Germany’s current account surplus
Under the price-specie-flow mechanism, what happens when Germany’s current account surplus is greater than its non-reserve financial account deficits?A.German loans will finance a...
cyxssbThe current account is equal to
The current account is equal toA.S(p)-I + T-G B.C+I+G+X C.I+X D.T-GAnswer: A
cyxssbA debit entry in the balance of payments accounts represents
A debit entry in the balance of payments accounts representsA.a transaction that includes a payment from abroad to a domestic resident.B.a transaction that includes a payment abr...
cyxssbA current account surplus implies that
A.The country is a net lender to the rest of the worldB.The country is running a net financial account surplusC.Foreign investment in domestic securities is at very low levelsD.All...
cyxssbUnder the gold standard era of 1870 – 1914,
A.central banks tried to have sharp fluctuations in the balance ofB.central banks tried to avoid sharp fluctuations in the current account of the balance ofC.central banks tried to...
cyxssbThe nation of Pecunia had a current account
a.What was the balance of payments of Pecunia in that year? What happened to the country’s net foreign assets?Ans. –The balance of payments is a colloquial name for the official ...
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