MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The currency used to buy imported goods is A) the buyer's home currency. C) the currency of a third country. 1) B) the seller's home currency. D) special drawing rights. 2)
2) If portable disk players made in China are imported into the United States, the Chinese manufacturer is paid with A) international monetary credits. B) dollars. C) yuan, the Chinese currency. D) euros, or any other third currency. 3) If the United States sells beef to Japan, the U.S. beef producer is paid with A) euros, or any other third currency. B) dollars. C) yen, the Japanese currency. D) international monetary credits. 4) When Safeway supermarkets in the United States buys strawberries from Mexico, A) it must use dollars to pay Mexican farmers. B) it may use any currency it chooses. C) it must use pesos to pay Mexican farmers. D) the transaction shows up in the U.S. capital account. 5) A country records its international finance accounts in its A) balance of payments accounts. B) import/export log accounts. C) trade payments accounts. D) net exports payments account. 6) A country's balance of payments accounts record A) its international trading, borrowing, and lending. B) only its official transactions with other governments. C) the country's net indebtedness to foreigners. D) the flow of human and nonhuman resources between it and its trading partners. 7) A country's balance of payments accounts include all of the following EXCEPT A) military account. B) capital account. C) current account. D) official settlements account. 8) The balance of payments accounts include the A) non-performing account. C) current account.
8) B) export bank account. D) exim bank account. 9)
9) In part, a country's current account measures A) its current debt as opposed to its long-term debt. B) receipts from the sale of goods and services to foreigners and payments for goods and services bought from foreigners. C) net increases and decreases in a country's holdings of foreign currency. D) borrowing and lending activity between the country's residents and foreigners. 10) The balance of payments account used to record payments for imported goods and services is the A) exim account. B) current account. C) capital account. D) import account. 1
11) The largest part of the U.S. current account consists of A) net transfer payments between the United States and Mexico. B) Fed transfers of U.S. dollars to other central banks. C) receipts from exports and payments for imports. D) net borrowing between the United States and other countries. 12) In 2003, the U.S. current account had a A) deficit of $559 billion. B) balance with a discrepancy of $40 billion. C) surplus of $559 billion. D) deficit of $90 billion. 13) The balance of payments account that records foreign investment in the United States is the A) capital account. B) current account. C) exim account D) non-performing account. 14) The U.S. capital account measures A) foreign investment in the United States minus U.S. investment abroad. B) net increases and decreases in the U.S. holdings of foreign currency. C) net transfer payments between U.S. residents and foreigners. D) receipts from goods and services sold and transfers to and from foreigners. 15) If foreign investment in the United States exceeds U.S. investment abroad, there is a ________; and when U.S. investment abroad exceeds foreign investment in the United States, there is a(n) ________. A) current account surplus; current account deficit B) capital account deficit; capital account surplus C) current account surplus; official accounts surplus D) capital account surplus; capital account deficit 16) In 2003, the U.S. capital account had a A) deficit of $559 billion. C) surplus of $559 billion.
16) B) surplus of $115...