A resident of the U.S. just purchased a share of stock on the London stock market. As far as the U.S. balance of payments this purchase will
A) have no influence on the balance of payments since stock is not a good or service.
B) be entered as a unilateral transfer in the current account.
C) be entered in the financial account.
D) require special drawing rights.
Answer: C
You might also like to view...
If a member of the Board of Governors is limited to one 14-year term, how did Alan Greenspan serve 19 years on the Board of Governors?
A) A special exemption was approved for him. B) The rule was not in place at the time. C) He completed the remaining years left on someone else's term and then served one 14-year term. D) He didn't serve consecutive terms.
If the cross-price elasticity of two goods is 0.25, then we know that these goods are:
A. substitutes because their cross-price elasticity is greater than zero. B. complements because their cross-price elasticity is less than 1. C. substitutes because their cross-price elasticity is less than 1. D. complements because their cross-price elasticity is greater than zero.
There is a positive relationship between the quantity of reserves supplied and the federal funds rate.
Answer the following statement true (T) or false (F)
Refer to the above figure. Suppose E is the original equilibrium. Japanese residents have decreased their demand for U.S. goods. This will lead to
A. a depreciation of the yen and an increase in the quantity of yens sold per week. B. a depreciation of the yen and a decrease in the quantity of yens sold per week. C. an appreciation of the yen and an increase in the quantity of yens sold per week. D. an appreciation of the yen and a decrease in the quantity of yens sold per week.