Economics MCQs

Page No. 364

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


aunilateral transfers

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bcapital account

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c merchandise account

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d services account

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View Answer services account

The U.S balance of payments is constructed by ?


athe U.S Department of labor

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bthe U.S Department of Agriculture

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cthe U.S Department of commerce

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d the council of Economic Advisers to the President

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


amerchandise trade flows

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bservices flows

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ccurrent account flows

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dcapital flows

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View Answer capital flows

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


acapital outflows

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b merchandise exports

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cprivate gifts to foreigners

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dforeign aid granted to other nations

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


abalance of international indebtedness

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bbalance of financial transactions

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cbalance of payments

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dincome statements

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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

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bcapital imports equal capital exports

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cservices exports equal services imports

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d the total surplus or deficit equals zero

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


a involves receipts from foreigners

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binvolves payments to foreigners

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c increases the domestic money supply

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d decreases the demand for foreign exchange

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


a exporter

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bimporter

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cdebtor

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dcreditor

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View Answer debtor

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


astatistical discrepancy

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b balance of payments

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c balance of trade

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d trade deficit

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Which of the following statements is True ?


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

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

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

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

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