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The nation of Pecunia had a current account
a.What was the balance of payments of Pecunia in that year? What happened to the country’s net foreign assets?Ans. –The balance of payments is a colloquial name for the official ...
cyxssbA current account surplus implies that
A.The country is a net lender to the rest of the worldB.The country is running a net financial account surplusC.Foreign investment in domestic securities is at very low levelsD.All...
cyxssbWhich of the following are true in terms
Which of the following are true in terms of the current account balance?A.Monetary expansion increases the current accountB.Monetary expansion decreases the current accountC.Fiscal...
cyxssbConsider the following entries into Canada’s
Current Account: 30.7Capital Account: 5.3Financial Account (excluding official international reserves): -24.9 Statistical Discrepancy: -5.5What happened to Canada’s net foreign as...
cyxssbwhat happens when Germany’s current account surplus
Under the price-specie-flow mechanism, what happens when Germany’s current account surplus is greater than its non-reserve financial account deficits?A.German loans will finance a...
cyxssbIn terms of the current account,
A.a 2100 million dollar credit. B. a 2100 million dollars suplus.C.a 600 million dollar deficit. D. a 900 million dollar deficit.Answer: C
cyxssbThe Marshall-Lerner Condition states that
A.depreciation always has a favorable effect on the currentB.import dependency reinforces the effects of depreciation on the current account.C.high elasticity of exports is suffici...
cyxssbSuppose the nation of Pecunia had a current account
What happened to Pecunia’s net foreign assets in 2013?The CA deficit indicated net foreign assets decreased by $1 billion.How would the purchase of Pecunian assets by foreign cent...
cyxssbA current account surplus
A.poses a problem if domestic savings are being invested more profitably abroad than they would be atB.may pose no problem if domestic savings are being invested more profitably ab...
cyxssbA debit entry in the balance of payments accounts represents
A debit entry in the balance of payments accounts representsA.a transaction that includes a payment from abroad to a domestic resident.B.a transaction that includes a payment abr...
cyxssbThe balance on current account includes
The balance on current account includes which of the following:exports minus imports of goods and servicesincome receipts on US assets abroad minus income payment on foreign assets...
cyxssbA country’s current account
A.balance equals the change in its net foreign wealth.B.balance equals the change in its foreign wealth.C.surplus equals the change in its foreign wealth.D.deficit equals the chang...
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