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

Related Mcqs:

1. A capital account surplus might be expected to cause a current account deficit because the associated ?

   A. capital outflow would cause the nation’s currency to depreciate contributing to a trade deficit
   B. capital inflow would cause the nation’s currency to depreciate contributing to a trade deficit
   C. capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
   D. capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit

2. The difference between a country’s balance of payments and its balance of international indebtedness?

   A. is equal to official reserve transactions
   B. occurs because of foreign exchange fluctuations
   C. reflects statistical discrepancies
   D. reflects the difference between flow and stock concepts

3. If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?

   A. rise; falls; rise; deficit
   B. falls; rises; falls; surplus
   C. falls; falls; falls; surplus
   D. is static; low; rises; deficit

4. If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?

   A. falls; falls; falls; surplus
   B. falls; rises; falls; surplus
   C. is static; low; rises; deficit
   D. rises; falls; rises; deficit

5. Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?

   A. deficit
   B. surplus
   C. revaluation
   D. devaluation

6. If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?

   A. falls; falls; falls; surplus
   B. is static; low; rises; deficit
   C. falls; rises; falls; surplus
   D. rises; falls; rises; deficit

7. The balance on current account ?

   I- equals the absolute value of the balance on capital account
   II- is financed by savings
   III- is net grants minus remittances
   IV- includes goods services and unilateral transfers

   A. I and II only
   B. II and III only
   C. I and IV only
   D. None of the above

8. Account is format banking, brokerage or business relationship established to provide for regular services. dealings and other financial transactions. Which of the following phenomenon(s) are also referred by term, Account ?

   A. A precise list or enumeration of financial transactions
   B. Money deposited for checking savings or breakage use
   C. A customer having business or credit relationship with a firm
   D. All of these

9. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?

   A. increase in the money demand
   B. decrease in the money demand
   C. increase in the money demand
   D. None of the above

10. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?

    A. decrease in the money supply
    B. increase in the money supply
    C. decrease in the money demand
    D. None of the above