cd8cd552db28943f022096d821b9a279 (1)

182

Test Bank for International Economics, 9e

CHAPTER 11 THE BALANCE OF PAYMENTS

MULTIPLE-CHOICE MULTIPLE-CHOICE QUESTIONS 1.

On the balance-o balance-of-pay f-payments ments statement statements, s, merchandis merchandisee imports are are classifie classified d in the: a. Current account  b. Capital account c. Unil Unilaater teral tr trans ansfer fer acc account ount d. Offi Offici cial al sett settle leme ment ntss acco accoun untt

2.

The balance balance of internatio international nal indebtedne indebtedness ss is a record record of a country country’s ’s interna international: tional: a. n!e n!est stme ment nt posi positio tion n o!er o!er a peri period od of time time  b. n!estment position at a fi"ed point in time c. Trade ade pos posit itio ion n o!e o!err a peri period od of time time d. Trade ade pos posit itio ion n at at a fi" fi"ed ed poin pointt in time time

#. $hich $hich bala balance nce-of -of-pa -payme yments nts item item does does not  directly  directly enter into the calculation of the U.%. &ross domestic  product' a. (erchandise ise imports  b. %hippin& and transportation receipts c. )ir )irect ect for foreei&n i&n in!e in!est stme ment nt d. %er!ice e"ports *. $hich $hich of the the follo+i follo+in& n& is cons conside idere red d a capital capital inflow' a.  sale sale of of U.%. U.%. fin finan anci cial al ass asset etss to a fore forei& i&n n buye buyer  r   b.  loan from a U.%. ban to a forei&n borro+er  c.  pur purch chas asee of for forei ei&n &n fina financ ncia iall asset assetss by a U.% U.%.. buyer  buyer  d.  U.%. citie citien’ n’ss repa repayme yment nt of of a loan loan from from a forei& forei&n n ban  ban  /. $hich $hich of of the the follo follo+in +in& & +ould +ould call call for for inpayments to the United %tates' a. mer m eric ican an impo import rtss of 0erm 0erman an stee steell  b. 0old flo+in& out of the United %tates c. meric merican an unilate unilateral ral transf transfers ers to less-d less-de!e e!elop loped ed countr countries ies d. meric merican an firm firmss sellin sellin& & insur insuranc ancee to ritis ritish h shipp shippin& in& compan companies ies

18#

Test Bank for International Economics, 9e

.

n a country’s balance of payments, +hich of the follo+in& transactions are debits' a. )omestic ban balances o+ned by forei&ners are decreased  b. 3orei&n ban balances o+ned by domestic residents are decreased c. ssets o+ned by domestic residents are sold to nonresidents d. %ecurities are sold by domestic residents to nonresidents

4.

$hich of the follo+in& is classified as a credit  in the U.%. balance of payments' a. U.%. e"ports  b. U.%. &ifts to other countries c.  flo+ of &old out of the U.%. d. 3orei&n loans made by U.%. companies

Table 11.1 &i!es hypothetical fi&ures for U.%. nternational Transactions. On the basis of this information, ans+er  5uestions 8 and 6. Table 11.1.

U.S. International Transactions

Transaction

mount 7billions of dollars

(erchandise imports (ilitary transactions, net ;emittances, pensions, transfers U.%. pri!ate assets abroad (erchandise e"ports n!estment income, net U.%. &o!ernment &rants 7e"cludin& military 3orei&n pri!ate assets in the U.%. Compensation of employees llocation of %);s Tra!el and transportation receipts, net

119 / 29 /9 11/ 1/ / 2/ / / 29

8.

ased on the information pro!ided in Table 11.1, the goods and services balance e