All of the following are deficit items in the balance of payments accounts EXCEPT
A) U.S. residents purchases of gold from foreign residents.
B) U.S. tourists spending funds in Europe.
C) exports of merchandise.
D) U.S. purchases of foreign companies' stocks and bonds.
Answer: C
You might also like to view...
Which of the following is not a component of the M2 money supply?
A) Cash in circulation B) Gold owned by the federal authorities C) Deposits in checking accounts D) Any issued traveler's checks E) All of the above.
Negative market feedback refers to a tendency for
A) one or two firms in an oligopolistic industry to respond to price decreases by initiating efforts to engage in price leadership. B) a particular product to fall out of favor with additional consumers because other consumers have stopped purchasing the product. C) the dominant firm in an oligopolistic industry to react to competing firms' price increases by decreasing the price of its own product. D) price wars to break out in oligopolistic industries in which firms produce products possessing characteristics that make them prone to network effects.
Which of the following statements are true?
A. Fiscal policy and monetary policy are different means used to attain the same goals. B. Budget deficits are most appropriate during recessions rather than periods of inflation. C. Automatic stabilizers help smooth out the business cycle. D. All of the statements are true.
Suppose the United States is experiencing a balance of payments deficit. To prevent the exchange rate from depreciating, the U.S. Treasury must:
A. sell foreign currency and buy dollars. B. sell dollars and buy foreign currency. C. sell both dollars and foreign currency. D. buy both dollars and foreign currency.