The balance of payments is 1) the value of goods and services bought and sold in the world market. 2) a summary record of a country's purchases and sales of goods and services in the world market. 3) a summary record of a country's economic transactions with foreign residents and governments. 4) the value of merchandise goods bought and sold in the world market.

The balance of payments is 1) the value of goods and services bought and sold in the world market. 2) a summary record of a country's purchases and sales of goods and services in the world market. 3) a summary record of a country's economic transactions with foreign residents and governments. 4) the value of merchandise goods bought and sold in the world market.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 45P: Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented...

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Question

The balance of payments is
1) the value of goods and services bought and sold in the world market.
2) a summary record of a country's purchases and sales of goods and services in
the world market.
3) a summary record of a country's economic transactions with foreign residents
and governments.
4) the value of merchandise goods bought and sold in the world market.

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The following table presents international flow values information for a country, expressed in generic units. Exports of goods: 4,000 Exports of services: 2,500 Investment income receipts: 1,600 Secondary income receipts: 400 Imports of goods: 1,200 Imports of services: 5,000 Investment income payments: 2,300 Secondary income payments: 100 Calculate the country's trade balance. Type your answer...
Which of the following is not included in the current account?a. exports of goodsb. imports of goodsc. U.S. capital inflow and outflowd. unilateral transfers
What is nation’s current account balance on its balance of payments given the following information? Imports: $206 Exports: $250 Government spending abroad: $33 Direct investment abroad; $34 Foreign purchases of U.S. securities: $33 Net income from investment abroad: $71
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The capital account on the United States' balance of payments includes ALL BUT WHICH of the following transactions? a. Changes in ownership of foreign stocks. b. The sale of U.S. automobiles to German consumers. c. Foreign investors construct a factory on U.S. soil. d. The purchase of U.S. bones by a foreign government. e. A U.S. firm buys property in a foreign country.
The figure below shows the flow of goods, services, and payments between Kenya (home country) and the rest of the world. with reference to the figure, explain; a) How does the bottom portion, showing the international flow of investments and capital differs from the upper portion. b) The relationship between a current account deficit or surplus and the flow of funds.
In 2010, the country of Vesey exported goods worth $312 billion and services worth $198 billion. It imported goods worth $525 billion and services worth $255 billion. It sent $1.2 billion in famine relief to Africa, and received $3 billion to support its first democratic election efforts. What was the current account balance in Vesey for 2010?
Under a system of flexible exchange rates, what will correct a deficit in a country's balance of payments? a. an appreciation in the nation's currency b. a decline in the nation’s domestic price level c. a depreciation in the nation's currency d. an increase in the nation’s inflation rate 2. Which of the following would supply Canadian dollars to the foreign exchange market? a. an increase in the number of Canadians going to Las Vegas over the holidays b. an increase in spending due to American tourists in Canada c. the sale of a Canadian corporation to a German investor d. the sale of wheat from Manitoba to a European bakery
Which one is corre
As domestic currency appreciates, we would expect a. Trade deficit to decrease. b. Trade deficit to increase. c. Imports to decrease. d. Exports to increase.
Which of the following measures would best rectify a deficit on a country's Balance of Payments Account? a. Revaluing the currency b. Relaxing exchange controls c. Deflationary fiscal policy d. Lowering tariff barriers
The record of a country's transactions in goods, services, and assets with the rest of the world is its A) balance of trade account. B) current account. C) capital account. D) balance of payments account