Question : 11) In 2012, the United States had A) a current account : 1238306

11) In 2012, the United States had

A) a current account surplus because imports were greater than exports.

B) a capital and financial account deficit because exports were greater than imports.

C) a current account deficit because imports were greater than exports.

D) no change in U.S. official reserves.

E) a current account deficit and a capital and financial account deficit.

12) Interest received from U.S. holdings of foreign assets and interest paid to foreigners for U.S. investment assets is recorded in the

A) capital and financial account.

B) official settlements account.

C) official reserves account.

D) current account.

E) official dollar account.

13) Suppose you own some German government bonds that pay you interest every year. This interest 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) interest account

14) If the current account balance is negative, net interest is $100 billion and net transfer is -$100 billion, then

A) imports exceed exports.

B) exports exceed imports.

C) real GDP exceeds potential GDP.

D) the official settlements account must be positive.

E) the official settlements account must be negative.

15) In 2008, the U.S. current account balance was -$706 billion, net interest was +$119 billion, net transfers were -$128 billion, and exports were +$1,827 billion. Therefore, imports were

A) -$2,524 billion.

B) +$2,524 billion.

C) +$1,112 billion.

D) -$1,112 billion.

E) +$2,780 billion.

16) If the current account balance is -$100 billion, net interest = $0, net transfers = $0, then

A) exports are greater than imports.

B) imports are greater than exports.

C) the capital and financial account balance must be +$100 billion.

D) there was an increase in net foreign assets.

E) the country is loaning abroad.

17) If the United States imports goods and services for a total of $45 billion, exports goods and services for a total of $40 billion, records $4 billion as net interest and zero as net transfers, then the U.S. current account balance is

A) $89 billion.

B) $1 billion.

C) zero.

D) -$1 billion.

E) $81 billion.

18) The capital and financial 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 of foreign currency.

E) the nation’s imports and exports of capital goods.

19) The capital and financial account records

A) all the purchases and sales of capital goods in the United States.

B) the current value of the balance of payments in U.S. dollars.

C) transactions involving trade, interest payments, and net transfers.

D) transactions involving foreign investment in the United States and U.S. investment abroad.

E) imports and exports of capital goods.

20) Foreign investment in the United States and U.S. investment abroad is recorded in the

A) investment account.

B) official settlements account.

C) capital and financial account.

D) current account.

E) creditor/debtor account.