MCQs of Economics – The Balance of Payments

International Investment Position of the U.S 2011 U.S Assets Abroad
U.S government assets $800 billion
U.S private assets 200
Foreign Assets in the U.S
Foreign official assets 600
Foreign private assets 300

Referring to the above table, the U.S balance of international indebtedness suggests that the U.S is a net:

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

A country that is a net international debtor initially experiences a (an):

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

Credit (-) items in the balance of payments correspond to anything that:

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

In the balance of payments the statistical discrepancy is used to:

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

All of the following are credit items in the balance of payments except:

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

A capital account surplus might be expected to cause a current account deficit because the associated:

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

The current account includes:

The U.S balance of payments is constructed by:

Debit entries on the balance of payments are the entries that would:

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

Current account deficit are offset by

The difference between a country’s balance of payments and its balance of international indebtedness:

A nation wishing to reduce its current account deficit would be advised to:

A nation will a current account deficit will be:

In the calculation of gross domestic product net exports are

A current account surplus implies that:

Purchases of government securities in the United States by foreigners is:

When a country has a trade deficit it

In balance of payments accounting tourism and travel are classified in the

Historically countries at early stages of rapid economic development have tender to experience

The argument that U.S current account deficits cause net job losses for Americans:

The balance of trade is a record of:

Direct investment and security purchases are classified as:

____ is needed to balancell the balance of payments statements

The record of a country’s transactions in goods, services and assets with the rest of the world is its:

The differences between a country’s merchandise exports and its merchandise imports is the

The balance of payments is divided into two major accounts the:

Which of the following statements is correct?

Which of the following statements is True?

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