ECO 305 Week 8 Quiz – Strayer
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Quiz 7 Chapter 10 and 11
CHAPTER 10
THE BALANCE OF PAYMENTS
MULTIPLE CHOICE
1. On
the balance-of-payments statements, merchandise imports are classified in the:
a. Current account
b. Capital account
c. Unilateral transfer account
d. Official settlements account
2. The
balance of international indebtedness is a record of a country's international:
a. Investment position over a period of
time
b. Investment position at a fixed point in
time
c. Trade position over a period of time
d. Trade position at a fixed point in time
3. Which
balance-of-payments item does not directly enter into the calculation of the
U.S. gross domestic product?
a. Merchandise imports
b. Shipping and transportation receipts
c. Direct foreign investment
d. Service exports
4. Which
of the following is considered a capital inflow?
a. A sale of U.S. financial assets to a
foreign buyer
b. A loan from a U.S. bank to a foreign
borrower
c. A purchase of foreign financial assets
by a U.S. buyer
d. A U.S. citizen's repayment of a loan
from a foreign bank
5. Which
of the following would call for inpayments to the United States?
a. American imports of German steel
b. Gold flowing out of the United States
c. American unilateral transfers to
less-developed countries
d. American firms selling insurance to British
shipping companies
6. In
a country's balance of payments, which of the following transactions are
debits?
a. Domestic bank balances owned by
foreigners are decreased
b. Foreign bank balances owned by domestic
residents are decreased
c. Assets owned by domestic residents are
sold to nonresidents
d. Securities are sold by domestic
residents to nonresidents
7. Which
of the following is classified as a credit in the U.S. balance of payments?
a. U.S. exports
b. U.S. gifts to other countries
c. A flow of gold out of the U.S.
d. Foreign loans made by U.S. companies
Table
10.1 gives hypothetical figures for U.S. International Transactions.
Table
10.1. U.S. International Transactions
Amount
Transaction (billions of dollars)
Merchandise
imports 110
Military
transactions, net -5
Remittances,
pensions, transfers -20
U.S.
private assets abroad -50
Merchandise
exports 115
Investment
income, net 15
U.S.
government grants -5
(excluding
military)
Foreign
private assets in the U.S. 25
Compensation
of employees -5
Allocation
of SDRs 5
Travel
and transportation receipts, net 20
8. Referring
to Table 10.1, the goods and services balance equals:
a. $5 billion
b. $15 billion
c. $20 billion
d. $25 billion
9. Referring
to Table 10.1, the current account balance equals:
a. $5 billion
b. $10 billion
c. $15 billion
d. $20 billion
10. Unlike
the balance of payments, the balance of international indebtedness indicates
the international:
a. Investment position of a country at a
given moment in time
b. Investment position of a country over a
one-year period
c. Trade position of a country at a given
moment in time
d. Trade position of a country over a
one-year period
11. Which
of the following indicates the international investment position of a country
at a given moment in time?
a. The balance of payments
b. The capital account of the balance of
payments
c. The current account of the balance of
payments
d. The balance of international
indebtedness
12. Concerning
the U.S. balance of payments, which account is defined in essentially the same
way as the net export of goods and services, which comprises part of the
country's gross domestic product?
a. Merchandise trade account
b. Goods and services account
c. Current account
d. Capital account
13. If
an American receives dividends from the shares of stock she or he owns in
Toyota, Inc., a Japanese firm, the transaction would be recorded on the U.S.
balance of payments as a:
a. Capital account debit
b. Capital account credit
c. Current account debit
d. Current account credit
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