Author: Adden wafa

A. balance of international indebtedness
B. balance of financial transactions
C. balance of payments
D. income statements

A. merchandise imports equal merchandise exports
B. capital imports equal capital exports
C. services exports equal services imports
D. the total surplus or deficit equals zero

A. involves receipts from foreigners
B. involves payments to foreigners
C. increases the domestic money supply
D. decreases the demand for foreign exchange

A. exporter
B. importer
C. debtor
D. creditor

A. statistical discrepancy
B. balance of payments
C. balance of trade
D. trade deficit

A. The overall sum of all the entries in the balance of payments must be positive
B. A 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
D. If the current account is in surplus the capital account must be in deficit

A. current account the capital account
B. current account the trade account
C. trade account the capital account
D. current account the reserve account

A. balance of trade
B. capital account
C. current account
D. balance of payments

A. capital account transactions
B. current account transactions
C. unilateral transfer transactions
D. merchandise trade transactions

A. is true by definition in all possible circumstances
B. is supported by recent U.S history
C. focuses only on the overall economy and is thus always true
D. fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending