Part 1 One-Choice Questions 1. Which of the following is NOT included in the balance of payments? ) A the capital account B the current account C the financial account D the government budget account 2. A trade deficit indicates that ( ). A a country imports less than it exports B a country imports more than it exports C a country's imports equals its exports D a country's trade has increased on average 3. An example of foreign direct investment is A a U.S. investor buying stock in a British firm. B a U.S. investor buying a Canadian bond. C a U.S. firm buying an Australian government bond. D GM building a factory in Korea. 4. Which statement about the risks of bond investing is FALSE C ) A A bond issuer might not be able to pay the interest or the principal as stated in a bond. B Market interest rate might change after the purchase of a bond. C High-quality corporate bonds are called gilt-edged bonds. D Holding unsecured corporate bond will take greater risks in the future than holding secured corporate bond