Question : 31) The official settlements account records the A) change in official : 1238311

31) The official settlements account records the

A) change in official U.S. reserves.

B) revenue collected from taxing imports.

C) income used to settle international lawsuits.

D) change in the official U.S. exchange rate.

E) revenue collected from taxing exports.

32) The official settlements account is the record of

A) a nation’s international trading, borrowing and lending.

B) payments for imports, receipts for exports, net interest, and net transfers.

C) foreign investment in the nation minus the nation’s investment abroad.

D) changes in the government’s holdings for foreign currency.

E) exports of capital goods minus imports of capital goods.

33) When the government increases the level of official reserves by $50 million, the change is recorded in the

A) official settlements account.

B) capital and financial account.

C) foreign currency account.

D) official reserves account.

E) current account.

34) The official settlements account contains data on

A) officials’ expenses.

B) official reserves.

C) trade complaints that are officially settled.

D) official governmental complaints between countries.

E) capital imports and exports.

35) The government’s holdings of foreign currency is recorded in the

A) money account.

B) official settlements account.

C) capital and financial account.

D) current account.

E) currency account.

36) Suppose that the U.S. government acquires more foreign currency. This change is entered into which of the balance of payments accounts?

A) current account

B) capital and financial account

C) official settlements account

D) trade account

E) reserves account

37) When U.S. official reserves ________, the official settlements account balance becomes negative and when U.S. official reserves ________, the official settlements account balance becomes positive.

A) decrease; decrease

B) decrease; increase

C) increase; decrease

D) increase; increase

E) More information is needed about the balances on the current account and the capital account in order to answer this question.

38) Suppose that the U.S. government acquires more foreign currency. How does this change affect the balance of payments accounts?

A) The official settlements account balance is positive.

B) The official settlements account balance is negative.

C) The capital and financial account is positive.

D) The capital and financial account is negative.

E) The balance of payments account sum to a positive number equal to the value of the additional foreign currency the government has obtained.

39) If U.S. official reserves increase, the

A) current account increases.

B) balance of payments increases.

C) official settlements account balance is negative.

D) current account is positive.

E) official settlements account balance is positive.

40) If official reserves increase, then we know that the

A) official settlements account balance is negative.

B) capital and financial account is negative.

C) official settlements account balance is positive.

D) capital and financial account and the current account must sum to zero.

E) capital and financial account is positive.