Eppe3023 Tuto 6Q

EPPE3023 EKONOMI ANTARABANGSA
TUTORIAL 6
1. Which balance-of-payments item does not directly enter into the U.S. gross domestic
product calculation?
a. Merchandise imports
b. Shipping and transportation receipts
c. Direct foreign investment
d. Service exports
2. Which of the following is considered a capital inflow?

a. A sale of U.S. financial assets to a foreign buyer
b. A loan from a U.S. bank to a foreign borrower
c. A purchase of foreign financial assets by a U.S. buyer
d. A U.S. citizen's repayment of a loan from a foreign bank
3. In a country's balance of payments, which of the following transactions are debits?

a. Domestic bank balances owned by foreigners are decreased
b. Foreign bank balances owned by domestic residents are decreased
c. Assets owned by domestic residents are sold to non-residents
d. Domestic residents sell securities to non-residents
4. Which of the following is classified as a credit in the U.S. balance of payments?

a. U.S. exports
b. U.S. gifts to other countries
c. A flow of gold out of the U.S.
d. Foreign loans made by U.S. companies
5. Concerning the U.S. balance of payments, which account is defined in essentially the
same way as the net export of goods and services, which comprises part of the
country's gross domestic product?
a. Merchandise trade account
b. Goods and services account
c. Current account
d. Capital account
6. The current account of the U.S. balance of payments does not include:
a. Investment income
b. Merchandise exports and imports
c. The sale of securities to foreigners
d. Unilateral transfers
7. The value to American residents of income earned from overseas investments shows
up in which account in the U.S. balance of payments?
a. Current account
b. Trade account
c. Unilateral transfers account
d. Capital account
Table 1 gives hypothetical figures for U.S. International Transactions.

Amount
Transaction (billions of dollars)
Merchandise imports 110

Military transactions, net -5
Remittances, pensions, transfers -20
U.S. private assets abroad -50
Merchandise exports 115
Investment income, net 15
U.S. government grants -5
(excluding military)
Foreign private assets in the U.S. 25
Compensation of employees -5
Allocation of SDRs 5
Travel and transportation receipts, net 20
8. Referring to Table 1, the goods and services balance equals:

a. $5 billion
b. $15 billion
c. $20 billion
d. $25 billion
9. Referring to Table 1, the current account balance equals:

a. $5 billion
b. $10 billion
c. $15 billion
d. $20 billion
10. When all of the debit or credit items in the balance of payments are combined:
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
11. In the balance of payments, the statistical discrepancy is used to:

a. Ensure that the sum of all debits matches the sum of all credits
b. Ensure that trade imports equal the value of trade exports
c. Obtain an accurate account of a balance-of-payments deficit
d. Obtain an accurate account of a balance-of-payments surplus
12. When a country realises a deficit in its current account:
a. Its net foreign investment position becomes positive
b. It becomes a net demander of funds from other countries
c. It realises an excess of imports over exports of goods and services
d. It becomes a net supplier of funds to other countries
13. When the United States imports goods and services from other countries, the United
States
a. makes payments to other countries
b. receives payments from other countries
c. becomes a net lender to other countries
d. receives interest income from other countries
14. The balance of payments statement records

a. only changes in a country's official reserve assets that occur over a period
of time
b. only changes in a country's trade flows that occur over a period of time
c. only the flow of labour and capital among countries over a period of time
d. the international trading, lending, and borrowing transactions among
countries over a period of time
15. Concerning the balance of payments statement, the ______ indicates the receipts
from exports of goods and services sold overseas, the payments for imports of goods
and services from overseas, unilateral transfers (net), and income receipts and
payments (net)
a. capital and financial account
b. current account
c. official reserve asset account
d. monetary gold account
16. For the U.S. balance of payments statement, which of the following is not recorded in
the capital and financial account?
a. net interest income from international investments
b. purchases of Chinese stocks and bonds
c. sales of Mexican stocks and bonds
d. the acquiring of a business firm in another country
17. A negative balance in the capital and financial account suggests that a country
a. is realising a surplus on its current account
b. is realising a deficit in its current account
c. borrowing from the rest of the world
d. imports more goods and services than it exports

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EPPE3023 EKONOMI ANTARABANGSA

2. Which of the following is considered a capital inflow?

3. In a country's balance of payments, which of the following transactions are debits?

4. Which of the following is classified as a credit in the U.S. balance of payments?

Table 1 gives hypothetical figures for U.S. International Transactions.

Merchandise imports 110

8. Referring to Table 1, the goods and services balance equals:

9. Referring to Table 1, the current account balance equals:

11. In the balance of payments, the statistical discrepancy is used to:

14. The balance of payments statement records

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