1.When private savings is less than private investment, we will see a

	A.	Capital account surplus
	B.	Current account surplus
	C.	Cannot tell
	D.	Current account deficit

2.Over the past year, the South African Rand has depreciated against the U.S. dollar by 5%. Furthermore, the inflation in the U.S. was at 4% over the year while the inflation in South Africa stood at 7% over the year.

A.

The U.S. exporters to South Africa have lost their competitive advantage relative to the local firms by about 2%.

B.

The U.S. exporters to South Africa have lost their competitive advantage relative to the local firms by about 3%.

C.

The U.S. exporters to South Africa have gained a competitive advantage relative to the local firms by about 3%.

D.

The U.S. exporters to South Africa have gained a competitive advantage relative to the local firms by about 2%.

3.Which of the following is NOT an item to be considered in Balance of Payment (BOP) calculations?

	A.	An Australian-based company manages the development of an oil field in Kazakhstan.
	B.	A consumer buys a VCR made in Korea from a Melbourne department store.
	C.	Purchase of an Australian Treasury Bond by a foreign resident.
	D.	An Australian citizen living in Brisbane travels to Singapore and buys a camera.