1. All of the following affect the balance of the capital account except

A. Bank deposits.

B. Purchases of government and corporate securities.

C. Purchases of goods and services.

D. Loans.

2. The Federal Reserve System

A. permits member banks to accept drafts, but only for exports. B. actively encourages member banks to assist in financing international transactions.A. permits member banks to accept drafts, but only for exports.

C. discourages its member banks from accepting foreign drafts.

D. limits the type of international transactions for which member banks may accept drafts.

3. All of the following encouraged individuals to enter into risky mortgages during the 2000s EXCEPT

A. Financial institution lenders

B. Local government officials

C. Government-supported agencies

D. Mortgage originators