Y10 Revision on Balance of Payments

policies designed to reduce overall spending in the economy

An accounting of a country's international transactions for a particular time period

Which is NOT a cause of balance of payment disequilibrium?

People with money to lend (investors) like to invest their money where the interest rate is?

By making exports cheaper and imports more expensive, a BOP or trade deficit will

a tax on imports

Which one is NOT a benefit of export subsidies?

What should a country do with its interest rate to resolve financial account deficits?

Which one is not part of the current account?

It is a measure the flow of GOODS and SERVICES into and out of a particular country

When persistent deficits or surpluses in balance of payments occur

One way for a country to facilitate the flow of incomes earned by citizens abroad would be to___.

Any transaction that causes money to flow INTO a country

When the government gives money to domestic producers to encourage more exports

A CONDITION wherein a current account deficit is offset by a capital account surplus.

Devaluing your country's currency makes

A country can use a ___________to reduce imports and fix a BOP or trade deficit

Which one is NOT an example of a current account debit item?

Which is not a consequence of BOP disequilibrium?

Limiting the amount of foreign currency in the hands of citizens to reduce imports

A relatively higher interest rate can attract foreign ______________ and help fix a BOP deficit

Which of the given is NOT a debit item in the US current account?

raising interest rates helps fix BOP deficits by

Which is NOT an example of expenditure dampening policy