Question : 13.3   The Balance of Payments Accounts 1) Every international transaction automatically : 1303570

 

 

13.3   The Balance of Payments Accounts

 

1) Every international transaction automatically enters the balance of payments

A) once either as a credit or as a debit.

B) twice, once as a credit and once as a debit.

C) once as a credit.

D) twice, both times as debit.

E) the times, once as a credit, onces as a debit, and once as an exchange.

 

 

2) The official settlements balance or balance of payments is the sum of

A) the current account balance, the capital account balance, the non reserve portion of the financial account balance, the statistical discrepancy.

B) the current account balance and the capital account balance.

C) the current account balance, the capital account balance, the non reserve portion of the financial account balance.

D) the current account balance and the non reserve portion of the financial account balance.

E) the current account balance and the interest in all investments.

 

3) An American buys a Japanese car, paying by writing a check on an account with a bank in New York. How would this be accounted for in the balance of payments?

A) current account, a Japanese good import

B) current account, a U.S. good import

C) financial account, a U.S. asset import

D) financial account, a U.S. asset export

E) a current account as a U.S. good import and a financial account, a U.S. asset export

 

 

4) The United States issues a $10,000 debt forgiveness to Argentina. How is this accounted for in the balance of payments?

A) financial account, U.S. asset import

B) current account, Argentina transfer payment

C) current account, U.S. service export

D) financial account, U.S. asset export

E) current account, Argentina good import

 

 

5) A U.S. citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own U.S. bank account in New York. How is this transaction accounted for in the balance of payments?

A) financial account, U.S. asset export

B) current account, U.S. service import

C) current account, British good export

D) financial account, British asset import

E) financial account, U.S. asset import

 

 

6) You travel to Paris and pay for a $100 dinner with your credit card. How is this accounted for in the balance of payments?

A) current account, French service import

B) current account, U.S. good export

C) financial account, U.S. asset export

D) financial account, U.S. asset import

E) financial account, French asset export

 

7) The German government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. How is this accounted for in the balance of payments?

A) current account, French good export

B) current account, German good import

C) financial account, French asset export

D) financial account, German asset export

E) financial account, German asset import

 

 

8) The earnings of a Spanish factory with British owners are

A) counted in Spain’s GDP.

B) part of Britain’s GNP.

C) only counted in Britain’s GDP.

D) only part of Spain’s GNP.

E) counted in Britain’s GDP and are a part of Spain’s GNP.

 

 

9) The services British capital provides in Spain are a service export from Britain

A) therefore they are subtracted from British GDP in calculating British GNP.

B) therefore they are added to Spanish GDP in calculating Spanish GDP.

C) therefore they are added to British GDP in calculating British GNP.

D) therefore they are added to Spanish GNP in calculating Spanish GDP.

E) therefore they are subtracted from Spanish GNP.

 

 

10) Unilateral transfers between countries are

A) long-term loans.

B) only international gifts, never payments that do not correspond to the purchase of any good, service, or asset.

C) part of the current account but not a part of national income.

D) known for reducing the income of capital owners.

E) the difference between Y and GNP if the identity Y = C + I + G + CA holds exactly.