Which of the following sets of activities falls entirely within the capital account of the balance of payments? Select one: a. tourism; remittances; foreign direct investment. b. imports; a change in the NIR; remittances. c. foreign direct investment; foreign portfolio investment; net services balance. d. transfers; portfolio investment; a change in the net international reserves. e. foreign direct investment; portfolio investment; a rise in the net international reserves. 2. If there is a real appreciation of the local currency, then it takes Select one: a. less domestic currency to buy foreign currency. b. more local currency to buy foreign currency. c. fewer domestic goods to buy foreign goods. d. more local currency to buy foreign goods. e. more local goods to buy foreign goods.
Which of the following sets of activities falls entirely within the capital account of the balance of payments? Select one: a. tourism; remittances; foreign direct investment. b. imports; a change in the NIR; remittances. c. foreign direct investment; foreign portfolio investment; net services balance. d. transfers; portfolio investment; a change in the net international reserves. e. foreign direct investment; portfolio investment; a rise in the net international reserves. 2. If there is a real appreciation of the local currency, then it takes Select one: a. less domestic currency to buy foreign currency. b. more local currency to buy foreign currency. c. fewer domestic goods to buy foreign goods. d. more local currency to buy foreign goods. e. more local goods to buy foreign goods.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following sets of activities falls entirely within the capital account of the balance of payments?
Select one:
a.
tourism; remittances; foreign direct investment.
b.
imports; a change in the NIR; remittances.
c.
foreign direct investment; foreign portfolio investment; net services balance.
d.
transfers; portfolio investment; a change in the net international reserves.
e.
foreign direct investment; portfolio investment; a rise in the net international reserves.
2. If there is a real appreciation of the local currency, then it takes
Select one:
a.
less domestic currency to buy foreign currency.
b.
more local currency to buy foreign currency.
c.
fewer domestic goods to buy foreign goods.
d.
more local currency to buy foreign goods.
e.
more local goods to buy foreign goods.
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