Question 1

In the balance of payments notes, the red transactions stand for

inflows of money.

outflows of money.

Question 2

When the U.S. government sends aid to a foreign country, this aid shows up in the _______ of the balance of payments.

capital account

current account

statistical discrepancy

Question 3

If Chevron builds a Chevron-owned oil facility in another country, this shows up in the _____ of the balance of payments.

current account

capital account

statistical discrepancy

Question 4

A current account surplus means a capital account surplus as well.

True

False

Question 5

If a U.S. company wants purchase Japanese government securities, it needs to buy dollars, which results in an increased demand for dollars in the foreign exchange market, and sell yen, which results in an increased supply of Yen in the foreign exchange market.

Group of answer choices

True

False