Question : 101) Refer to the table above. The government sector balance : 1238288

 

101) Refer to the table above. The government sector balance is a

A) $900 billion deficit.

B) $900 billion surplus.

C) $2,900 billion balanced budget.

D) $2,900 billion trade deficit.

E) $500 billion deficit.

102) A country’s balance of payments accounts records its

A) tax receipts and expenditures.

B) tariffs and nontariff revenue and government purchases.

C) international trading, borrowing, and lending.

D) international exports and imports and nothing else.

E) tariff receipts and what it pays in tariffs to other nations.

103) Which of the following are balance of payments accounts?

i.capital and financial account

ii.tariff account

iii.current account

A) i only

B) ii only

C) iii only

D) i and iii

E) ii and iii

104) Which balance of payments account records payments for imports and exports?

A) current account

B) capital and financial account

C) official settlements account

D) reserves account

E) trade account

105) The current account balance is equal to

A) imports – exports + net interest + net transfers.

B) imports – exports + net interest – net transfers.

C) exports – imports – net interest + net transfers.

D) exports – imports + net interest + net transfers.

E) exports – imports – net interest – net transfers.

106) If an investment of $100 million from the United Kingdom is made in the United States, the $100 million is listed as a ________ entry in the ________ account.

A) positive; current

B) negative; capital and financial

C) positive; capital and financial

D) negative; current

E) positive; official settlements

107) If the United States receives $200 billion of foreign investment and at the same time invests a total of $160 billion abroad, then the U.S.

A) capital and financial account balance increases by $40 billion.

B) current account must be in surplus.

C) balance of payments must be negative.

D) capital and financial account balance decreases by $40 billion.

E) official settlements account balance increases by $40 billion.

108) In the balance of payments accounts, changes in U.S. official reserves are recorded in the

A) current account.

B) capital and financial account.

C) official settlements account.

D) international currency account.

E) international reserves account.

109) If a country has a current account balance of $100 billion and the official settlements account balance is zero, then the country’s capital and financial account balance must be

A) equal to $100 billion.

B) positive but not necessarily equal to $100 billion.

C) equal to -$100 billion.

D) negative but not necessarily equal to -$100 billion.

E) zero.

110) A country that is borrowing more from the rest of the world than it is lending is called a

A) net lender.

B) net borrower.

C) net debtor.

D) net creditor.

E) net loaner country.

111) A debtor nation is a country that

A) borrows more from the rest of the world than it lends to it.

B) lends more to the rest of the world than it borrows from it.

C) during its entire history has invested more in the rest of the world than other countries have invested in it.

D) during its entire history has borrowed more from the rest of the world than it has lent to it.

E) during its entire history has consistently run a capital account deficit.

112) Comparing the U.S. balance of payments in 2012 to the rest of the world, we see that the

A) United States has the largest current account surplus.

B) U.S. current account is similar in size to most developed nations and has a surplus.

C) United States has the largest capital and financial account deficit.

D) United States has the largest current account deficit.

E) U.S. current account is similar in size to most developed nations and has a deficit.

113) According to the U.S. balance of payments accounts in 2012, U.S. international borrowing is used for

A) private and public investment.

B) private consumption.

C) government expenditure.

D) private and public saving.

E) private saving and public consumption.