Question : 51) The sum of the balances of the three accounts : 1228101

51) The sum of the balances of the three accounts of the balance of payments (the current account, the capital account, and the official settlements account) is

A) negative if there is a balance of trade deficit.

B) equal to zero.

C) positive if there is a balance of trade surplus.

D) negative if there is a balance of trade surplus or positive if there is a balance of trade deficit.

E) positive if there is a balance of trade surplus or negative if there is a balance of trade deficit.

52) There are three balance of payments accounts. The sum of the balances on these three accounts will equal

A) the total amount of the nation’s foreign borrowing.

B) the total amount of the nation’s foreign lending.

C) zero.

D) the total amount of the nation’s exports.

E) the total amount of the nation’s imports.

53) In 2010, in the United States the sum of the balance of all three of the balance of payments accounts was

A) zero.

B) slightly negative.

C) greatly negative.

D) slightly positive.

E) greatly positive.

54) The ________ always equals zero.

A) sum of current account plus capital account

B) sum of current account plus official settlements account

C) sum of capital account plus official settlements account

D) sum of current account plus capital account plus official settlements account

E) official settlements account

55) When the U.S. current account has a deficit, international payments from the United States ________ U.S. international receipts. To cover the current account deficit, there must be a ________ in the combined capital and official settlements accounts.

A) are less than; surplus

B) exceed; surplus

C) are less than; deficit

D) equal; surplus

E) exceed; deficit

56) We know that among the current account, the capital account, and the official settlements account that the

A) current account is always larger than the capital and official settlements accounts combined.

B) current and capital accounts sum to zero while the official settlements account must be greater than zero.

C) current account plus the capital account plus the official settlements account must sum to zero.

D) current account plus the capital account plus the official settlements account must sum to 100.

E) current account plus the capital account equals zero.

57) The sum of the current account plus the capital account plus the official settlements account equals

A) 100 percent.

B) U.S. official reserves.

C) zero.

D) government expenditures.

E) U.S. exports.

58) If the current account balance has a $70 million deficit and there was no change in official reserves during that year, then we know that

A) the balance of payments must register a $70 million surplus.

B) the capital account balance must have a $70 million surplus.

C) the official settlements account balance must have a $70 million surplus.

D) net transfers were -$70 million.

E) the capital account balance must have a $70 million deficit.

59) If the U.S. capital account balance has a $30 million surplus and there was no change in official reserves during that year, we know that

A) U.S. net foreign lending must equal $30 million.

B) the United States has a $30 million current account deficit.

C) the United States is a net lender.

D) U.S. official reserves have increased by $30 million.

E) the United States has a $30 million current account surplus.

60) If the current account balance is -$100 billion, the capital account balance is $80 billion, then the official settlements account balance is

A) 0.

B) $180 billion.

C) $20 billion.

D) -$20 billion.

E) -$180 billion.