Q21. Portfolio investment is capital invested in activities that are ________ rather than made for ________. a. short term; the long term b. profit motivated; control c. control motivated; profit d. long term; profit Q22. In general there is consensus that ________ should be free but there is no such consensus that ________ should be free. a. international trade; international investment b. international investment; international goods trade c. international trade; international goods trade d. international investment; international trade Q23. The largest single component of the United States current account is ________. a. goods (merchandise) imports and exports b. services imports and exports c. income payments and receipts d. current transfers Q24. In general, as a country's income increases, so does the demand for imports. a. true b. false Q25. Over the last several years, the United States has run a ________ in the goods trade balance and a ________ in the services trade balance. a. surplus; deficit b. deficit; deficit c. surplus; surplus d. deficit; surplus Q26. When categorizing investments for the financial account component of the balance of payments the ________ is an investment where the investor has no control whereas the ________ is an investment where the investor has control over the asset. a. portfolio investment; direct investment b. portfolio investment; indirect investment c. direct investment; portfolio investment d. direct investment; indirect investment Q27. Which of the following is the best definition of money laundering? a. Legal transfer of funds through the usual international payments mechanisms. b. False invoicing of international trade transactions. c. The transfer of cash into collectibles that are then transferred across borders. d. The cross-border purchase of assets that are then managed in a way that hide the movement of money and its ownership. Q28. If your company were to import and export textiles, the transactions would be recorded in the current account subcategory of ________. a. goods trade b. current transfers c. services trade d. income trade Q29. The ________ is the difference between merchandise imports and exports and a measure of a country's international trade in goods and services. a. current account b. balance of payments c. capital account d. balance of trade Q30. In general, the United States goods trade balance has grown increasing positive over the last 3 years. a. true b. false