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
Related Mcqs:
- All of the following are debit items in the balance of payments except ?
A. capital outflows
B. merchandise exports
C. private gifts to foreigners
D. foreign aid granted to other nations - Credit (-) items in the balance of payments correspond to anything that ?
A. involves receipts from foreigners
B. involves payments to foreigners
C. increases the domestic money supply
D. decreases the demand for foreign exchange - All of the following are credit items in the balance of payments except ?
A. investment inflows
B. merchandise exports
C. payments for American services to foreigners
D. private gives to foreign residents - Credit (+) items in the balance of payments correspond to anything that ?
A. involves receipts from foreigners
B. involves payments to foreigners
C. increases the domestic money supply
D. decreases the demand for foreign exchange - Debit entries on the balance of payments are the entries that would ?
A. mean a loss of foreign exchange
B. bring foreign exchange into the country
C. indicate a surplus exist
D. exist at the bottom line after all accounts are totaled - 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 - 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 - 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 - A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?
A. reduction, increase
B. reduction, reduction
C. increase, reduction
D. increase , increase - In balance of payments accounting tourism and travel are classified in the ?
A. merchandise trade account
B. services account
C. unilateral transfers account
D. capital account
