Chapter 4

Beschreibung

Quiz am Chapter 4, erstellt von lauratorres0723 am 16/12/2014.
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Zusammenfassung der Ressource

Frage 1

Frage
4.1.2) Which of the following international transactions would NOT be counted as a balance of payments (BOP) transaction?
Antworten
  • A) An American tourist purchases cheese in Milwaukee, Wisconsin.
  • B) The U.S. subsidiary of a British firm pays profits (dividends) back to its parent firm in London.
  • C) A Canadian lumber baron purchases a U.S. corporate bond through an investment broker in Seattle.
  • D) All of the above are considered BOP transactions.

Frage 2

Frage
4.1.1) Which of the following is NOT a major subaccount of the Balance of Payments?
Antworten
  • A) the financial account
  • B) the accounts payable
  • C) the capital account
  • D) the current account

Frage 3

Frage
4.1.3) The balance of payments as applied to a course in international finance may be defined as:
Antworten
  • A) the amount still owed by an exporting firm after making an initial down payment.
  • B) the amount still owed by governments to the International Monetary Fund.
  • C) the measurement of all international economic transactions between the residents of a country and foreign residents.
  • D) the amount of a country's merchandise trade deficit or surplus.

Frage 4

Frage
4.1.4) Balance of payment (BOP) data may be important for any of the following reasons:
Antworten
  • A) BOP data helps to forecast a country's market potential, especially in the short run.
  • B) The BOP is an important indicator of a country's foreign exchange rate.
  • C) Changes in a country's BOP may signal a change in controls over payment of dividends and interest.
  • D) all of the choices provided above

Frage 5

Frage
4.1.5) A country experiencing a serious BOP ________ is more likely to ________ exports than otherwise.
Antworten
  • A) surplus; contract
  • B) surplus; expand
  • C) deficit; expand
  • D) none of the above

Frage 6

Frage
4.1.6) Which of the following would NOT be considered a typical BOP transaction?
Antworten
  • A) Toyota U.S.A. is a U.S. distributor of automobiles manufactured in Japan by its parent company.
  • B) The U.S. subsidiary of European financial giant, Credit Suisse, pays dividends to its parent in Zurich.
  • C) A U.S. tourist purchases gifts at a museum in London.
  • D) All are example of BOP transactions.

Frage 7

Frage
4.2.1) Which of the following is NOT a part of the CURRENT ACCOUNT of BOP?
Antworten
  • A) net export/import of goods
  • B) balance of trade
  • C) net portfolio investment
  • D) net export/import of services

Frage 8

Frage
4.2.2) Which of the following is NOT part of the FINANCIAL ACCOUNT of the BOP?
Antworten
  • A) net foreign direct investment
  • B) net import/export of services
  • C) net portfolio investment
  • D) other Financial items

Frage 9

Frage
4.2.3) Which of the following is NOT an item to be considered in BOP calculations?
Antworten
  • A) A foreign resident purchases a U.S. Treasury Bill.
  • B) A U.S.-based firm manages the development of an oil field in Kazakhstan.
  • C) A consumer buys a VCR made in Korea from a Florida Wal-Mart store.
  • D) A U.S. citizen living in Minnesota travels to Winnipeg, Canada, and buys a case of LaBatt's Canadian beer.

Frage 10

Frage
4.2.4) The balance of payments:
Antworten
  • A) determines the eligibility of countries for IMF aid.
  • B) adds up the value of all assets and liabilities of a country on a specific date.
  • C) records all international transactions for a country over a period of time.
  • D) all of the above

Frage 11

Frage
4.2.5) An American tourist purchases a leather jacket while in Italy. Which of the following statements is true?
Antworten
  • A) The leather purchase would be considered an import for the U.S. BOP.
  • B) This transaction would be properly accounted for in the Current Account of the U.S. BOP.
  • C) The leather purchase is considered an import of a good, and thus, considered part of the balance of trade as well.
  • D) All of these statements are true.

Frage 12

Frage
4.3.1) Which of the following is NOT part of the balance of payments account?
Antworten
  • A) the current account
  • B) the financial/capital account
  • C) the official reserves account
  • D) All of the above are BOP accounts.

Frage 13

Frage
4.3.2) The ________ includes all international economic transactions with income or payment flows occurring within the year.
Antworten
  • A) capital account
  • B) current account
  • C) financial account
  • D) IMF account

Frage 14

Frage
4.3.3) If your company were to import and export textiles, the transactions would be recorded in the current account subcategory of:
Antworten
  • A) services trade.
  • B) income trade.
  • C) goods trade.
  • D) current transfers.

Frage 15

Frage
4.3.4) The travel services provided to international travelers by United Airlines would be recorded in the current account subcategory of:
Antworten
  • A) services trade.
  • B) income trade.
  • C) goods trade.
  • D) current transfers.

Frage 16

Frage
4.3.5) Anaconda Copper Inc. created a subsidiary in Chile last year to mine copper ore. The proportion of net income paid back to the parent company as a dividend would be recorded in the current account subcategory of:
Antworten
  • A) services trade.
  • B) income trade.
  • C) goods trade.
  • D) current transfers.

Frage 17

Frage
4.3.6) The subcategory that typically dominates the current account is:
Antworten
  • B) services trade.
  • C) income trade.
  • D) transfer accounts.
  • A) goods (merchandise) trade.

Frage 18

Frage
4.3.7) In 2010 the United States posted a current account deficit of -$471 billion. The bulk of the negative value came from:
Antworten
  • A) a net transfer deficit.
  • B) an income balance deficit.
  • C) a goods trade deficit.
  • D) an income trade deficit.

Frage 19

Frage
4.3.8) Over the last two decades the surplus on U.S. services trade has typically been ________ the deficit on U.S. goods trade.
Antworten
  • A) greater than
  • B) equal to
  • C) less than
  • D) The relationship is constantly shifting from greater than to less than.
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