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

Direct investment and security purchases are classified as ?

A. Capital account transactions
B. Current account transactions
C. Unilateral transfer transactions
D. Merchandise trade transactions

The record of a country’s transactions in goods, services and assets with the rest of the world is its ?

A. Balance of trade
B. Capital account
C. Current account
D. Balance of payments

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

Current account deficit are offset by______________?

A. Merchandise trade deficits
B. Merchandise trade surpluses
C. Capital/financial account surpluses
D. Capital/financial account deficits

A nation wishing to reduce its current account deficit would be advised to ?

A. Engage in more government spending
B. Reduce government taxes
C. Increases private investment spending
D. Decrease domestic consumption

In the calculation of gross domestic product net exports are ?

A. The sum of merchandise trade and services
B. The current account plus long-term capital
C. The value of merchandise exports minus imports
D. Short-term capital plus the basic balance

Purchases of government securities in the United States by foreigners is ?

A. A credit item in the current account
B. A debit item in the capital account
C. A credit item in the capital account
D. A debit item in the current account

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

The argument that U.S current account deficits cause net job losses for Americans ?

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