Economics MCQs

Page No. 364

In the balance of payments travels and tourism are included in the category of ?


aunilateral transfers


bcapital account


c merchandise account


d services account


View Answer services account

The U.S balance of payments is constructed by ?


athe U.S Department of labor


bthe U.S Department of Agriculture


cthe U.S Department of commerce


d the council of Economic Advisers to the President



The role of _______ is to direct one nation’s savings into investments of another nation?


amerchandise trade flows


bservices flows


ccurrent account flows


dcapital flows


View Answer capital flows

All of the following are debit items in the balance of payments except ?


acapital outflows


b merchandise exports


cprivate gifts to foreigners


dforeign aid granted to other nations



A country’s transactions with the rest of the world are recorded in the ?


abalance of international indebtedness


bbalance of financial transactions


cbalance of payments


dincome statements


View Answer balance of payments

When all of the debit or credit items in the balance of payments are combined ?


amerchandise imports equal merchandise exports


bcapital imports equal capital exports


cservices exports equal services imports


d the total surplus or deficit equals zero



Credit (+) items in the balance of payments correspond to anything that ?


a involves receipts from foreigners


binvolves payments to foreigners


c increases the domestic money supply


d decreases the demand for foreign exchange



For the first time since World War I, in the mid-1980s the United States became a net international ?


a exporter


bimporter


cdebtor


dcreditor


View Answer debtor

The difference between the balance on current account and the balance on capital account is the ?


astatistical discrepancy


b balance of payments


c balance of trade


d trade deficit



Which of the following statements is True ?


aThe overall sum of all the entries in the balance of payments must be positive


bA country runs a current account surplus if it sells more of its assets abroad than it buys abroad


c A country runs a capital account deficit if it imports more than it exports


dIf the current account is in surplus the capital account must be in deficit



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