Any transaction that causes foreign exchange to leave a country is a
A. credit item in that country's balance of trade.
B. debit item in that country's balance of payments.
C. debit item in that country's balance of trade.
D. credit item in that country's balance of payments.
Answer: B
You might also like to view...
Adam got a job in a multinational company. He was told during the orientation session that he will not be terminated for poor performance during the first six months of his work
Adam immediately decided to put minimum effort into the job during these months. His behavior is an example of ________. A) a positive externality B) moral hazard C) the prisoners dilemma D) the free-rider problem
An increase in the world relative demand for U.S. output causes
A) a short-run real depreciation of the dollar against the euro. B) a long-run real appreciation of the dollar against the euro. C) a long-run real depreciation of the dollar against the euro. D) a short-run real appreciation of the euro against the dollar. E) a long-run real appreciation of the euro against the dollar.
Why does anyone demand foreign currency?
a. international trade in goods and services b. international trade in financial assets c. purchases of physical assets overseas d. All of the above are correct.
Suppose that the Fed decides to increase the growth rate of the money supply in the United States. What is most likely to happen to the U.S. trade deficit and to GDP?
A. The trade deficit will fall; GDP will fall. B. The trade deficit will rise; GDP will rise. C. The trade deficit will fall; GDP will rise. D. The trade deficit will rise; GDP will fall.