Question : 61) If the current account balance -$450 billion, the capital : 1238314

61) If the current account balance is -$450 billion, the capital and financial account balance is $440 billion, then the official settlements balance is

A) $10 billion.

B) -$10 billion.

C) $890 billion.

D) -$890 billion.

E) $0 because it is always zero.

62) Between 1981 and 2012, the United States

A) had a current account deficit almost every year.

B) had a current account surplus almost every year.

C) some years had a deficit and some years had a surplus that netted out to $0.

D) some years had a deficit and some years had a surplus that totaled a surplus of $2.5 trillion.

E) had a current account surplus or deficit that almost equal to $0 every year.

63) For most of the years since 1981, the United States has had

A) a current account deficit.

B) a capital and financial account deficit.

C) balanced trade.

D) a large official settlements balance.

E) an official settlements account deficit.

64) From the early 1990s through 2012, the U.S.

A) balance of payments exceeded the capital account.

B) current account was negative.

C) capital and financial account was negative.

D) actual balance of payments deficit exceeded what the United States measured as the balance of payments deficit.

E) current account and U.S. capital and financial account were both positive.

65) Which of the following has NOT changed much as a percent of GDP over the last twenty years for the United States?

i.the official settlements account

ii.the capital and financial account

iii.the current account

A) i only

B) ii only

C) iii only

D) ii and iii

E) None of the above answers is correct because all three have had large swings over the last 20 years.

66) Looking at the U.S. balance of payments from 1980 to 2012, we see that the

A) current account was positive until 1992 then turned negative.

B) current account has been negative for most years and was small in the late 1980s and early 1990s.

C) capital and financial account has been negative for most years and was small in the late 1980s and early 1990s.

D) official settlements account was large in the 1980s relative to the current account.

E) current account was negative until 1992 then turned positive.

67) From the 1990s to the present, the U.S. current account balance has had a ________, and the U.S. capital and financial account balance has had ________.

A) deficit; a deficit

B) deficit; a surplus

C) surplus; a deficit

D) surplus; a surplus

E) deficit; neither a deficit nor a surplus

68) Which of the following is true?

A) Most countries are net lenders.

B) Most countries are net borrowers.

C) A net borrower must be a debtor country.

D) A net lender must be a debtor nation.

E) A net lender must be a creditor nation.

69) The United States switched from being a ________ to being a ________ in the early 1980s, when it started to run large current account ________.

A) net lender; net borrower; surpluses

B) net borrower; net lender; surpluses

C) net lender; net borrower; deficits

D) net borrower; net lender; deficits

E) debtor nation; creditor nation; deficits

70) During the last year, foreign investment in a country was $500 billion and the country’s investment abroad was $600 billion. Which of the following statements is true?

A) The country has net borrowing of $100 billion.

B) The country has a current account deficit of $100 billion.

C) The country has a current account deficit of $1,100 billion.

D) The country has net lending of $100 billion.

E) The country has a capital and financial account deficit of $1,100 billion.