Balance of Payments Accounts

Question 1

A surplus in a country's financial/capital account necessarily means

Aan inflationary economy

Ba recessionary economy

Cthis option was wrong.

Dflat real interest rates

Ea deficit in its current account

Question 2

Which of the following is an example of a current account transaction?

Which of the following is an example of a current account transaction?

AA Canadian business sells $100 million in maple syrup to the United States.

BThe United States government purchases $20 million worth of British pounds.

C this answer was incorrect

DA major American technology company buys out its largest rival.

EA Chinese firm purchases United States government bonds.

Question 3

Use the data from a nation's balance of payments below to answer the following question. Exports $750 Imports $600 Net income from abroad -$225 Net unilateral transfers $30 Based on the data above, what is the current account and financial/capital account balance