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Balance of Payments Flashcards | StudBud
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Balance of Payments
Balance of Payments
26 terms
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StudBud Administration
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1,005 plays
Current Account, FOREX, AP Macro
Flashcards
26 cards
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Questions
26
Answers
1
An American contractor in Saudi Arabia sends his paycheck home.
Official Reserves
Financial
Current
2
A US resident buys chocolate from Belgium.
Credit
Debit
3
A US resident buys chocolate from Belgium.
Official Reserves
Current
Financial
4
US sends aid to Africa to help fight the Ebola outbreak.
Debit
Credit
5
An appreciation of the USD on the FOREX could be caused by which of the following
US interest rates rising
US CPI rising
Tariff on goods imported into US
Demand for USD by US residents
6
Spanish olive farmers buy John Deere tractors
Credit
Debit
7
According to the graph the BRL has
depreciated
remained neutral
appreciated
8
Japanese firms purchasing production plants in Thailand will be recorded in Thailand's BoP as:
a credit in its Financial Account
a credit in its Current Account
a debit in its Financial Account
a debit in its Current Account
9
Bob purchases $50,000 worth of common stock in Korean manufacturer Hyundai.
Credit
Debit
10
Governments buying their own currency on the FOREX market is recorded as a...
negative under Reserve Assets
Current Transfer in the Current account
debit under Reserve Assets
credit under Reserve Assets
11
Bob purchases $50,000 worth of common stock in Korean manufacturer Hyundai.
Financial
Current
Official Reserves
12
Toyota builds a factory in San Antonio, Texas.
Official Reserves
Financial
Current
13
What will happen to the value of the American Dollar when we have a current account surplus?
Stay the same
Appreciate
Depreciate
14
The BOP on the current account plus the BOP on the financial account is equal to
b - one
c - the trade balance
a - 0
d - net capital flows
15
US sends aid to Africa to help fight the Ebola outbreak.
Official Reserves
financial
Current
16
What is the forex?
Market that determines foreign exchange rates for some countries
Market that determines foreign exchange rates for every country
Market that determines foreign exchange rates for Asia and Oceania
Market that determines foreign exchange rates for every currency
17
Spanish olive farmers buy John Deere tractors
Financial
Official Reserves
Current
18
A German receives rent from a property they own in the US. How does this affect the US BOP?
current account, debit
current account, credit
financial account, debit
financial account, credit
19
The Federal Reserve acquires excess foreign currency.
Debit
Credit
20
The Federal Reserve acquires excess foreign currency.
Financial
Official Reserves
Current
21
Fed's effect on the Forex market
D
A
E
B
22
One advantage to currency appreciation
Less expensive imports
More expensive imports
Lower export levels
Confidence
23
What could cause the shift in demand for US dollars on the FOREX graph?
The U.S. has higher inflation than Mexico
decrease in Mexican tourism in u.S.
U.S. has higher interest rates than Mexico
Mexicans have lower incomes
24
An appreciation of the US Dollar in the FOREX market would be caused by a decrease in
demand for the dollar by US residents
a tariff on goods imported into the US
Inflation
US interest rates
25
An American contractor in Saudi Arabia sends his paycheck home.
Debit
Credit
26
Toyota builds a factory in San Antonio, Texas.
Credit
Debit
