1. A BOP is similar to an income statement, since it shows the income flow in and out of a country. *

True

False

2. A direct quote in Mexico would be foreign units per Mexican Peso, while an indirect quote would be in Mexican Peso per foreign currency unit. *

True

False

3. A portfolio investment is an investment that has long maturity, where the investing company holds ownership control over the investee company. *

True

False

4. For balance of payment transactions relating to the financial account, the aim of direct investment is to establish profit. *

True

False

5. The usage of the double-entry book keeping by the 3 major BOP accounts lead to serious discrepancies in the debits and credits. *

True

False