X Question 1 0 points A which of the following would not be counted in the us. balance of payments current account? 0 A. A wealthy Italian purchases numerous rosebus hes in the United States for his Villa. 0 B. A foreign country's purchase of a new jet fighter aircraft from a U.S. aircraft company. 0 I3. A U.S. company's purchase of newly constructed factory buildings in Mexico. 0 D. Income paid to an American oil engineer acting as an adviser to Middle Eastern countries in the area of petroleum extraction. X G) E. A $50 dividend check a us. citizen receives from ownership of shares of stock in a German corporation. X Incorrect X Question 2 0 points A If a country is a net capital importer. capital inows exceed capital outows. In this case: A. There's a current account surplus. B. There will be a capital account deficit. I3. There's a current account deficit. D. There will be a balance of payments surplus. @0000 E. There will be a balance of payments deficit. X Incorrect X Question 3 0 points A The role of international capital movements is to: X A. Take wealth from rich countries and transfer it to poor countries. B. Substitute for international labor movements. C. Take advantage of the opportunities in developing countries. D. Direct one country's savings into investments in another country. O E. Get needed capital to low-interest economies suffering from a capital shortage. X IncorrectX Question 5 0 points If the total value of goods exported from a nation is less than the total value of goods imported to the nation. the nation is experiencing a: A. Merchandise trade surplus. B. Merchandise trade deficit. . Capital account imbalance. D. Negative balance on the current account. 00006) E. Negative balance of payments. X Incorrect X Question 6 0 points The balance of payments is equal to: O A. Exports. B. Imports. . ZE I'D. (900 D. Exports minus imports. O E. Imports minus exports. X Incorrect X Question 9 0 points when money leaves a country tor the purchase of goods abroad: A. It leaves the original country and does not come back. B. It leaves the original country. but comes back to that country in some form. . The original country is worse off. D. It becomes a leakage for the country that sells the good. @0000 E. It becomes an injection for the original country. X Incorrect X Question 13 0 points A If the currency market begins in equilibrium and the Fed increases the supply of U.S. dollars as part of expansionary monetary policy, what happens to the number of Mexican pesos that must be given to receive $1 in exchange? A. More pesos must be given for 31. B. Fewer pesos must be given for 31. l:. The same number of pesos must be given for $1. D. The effect on the number of pesos cannot be determined. E. None of the above. 00006) X Incorrect X Question 14 0 points A Credit items in a nation's balance of payments correspond to: A. Merchandise imports. B. Anything that decreases the domestic money supply. l3. Anything that increases the demand for foreign currency. D. Anything that increases the supply of foreign currency. 000690 E. Capital outows. X Incorrect X Question 11 0 points The balance of payments: A. Is positive when the country is a lender in the international capital market. B. Is always equal to zero. . Is positive when the nation runs a trade surplus. D. Is negative when the nation runs a trade decit. 00006) E. Is negative when the country is a borrower in the international capital market. X Incorrect X Question 12 0 points An excess of saving over investment in a nation is necessarily reected in: O A. Changes in the money supply. X (E) B. Capital inow from other countries. 0 l3. More imports than exports. O D. An appreciation (increase) of the foreign exchange rate. Q E. More exportsthan imports. X Incorrect X Question 15 0 points Trade barriers are put in place for many reasons. including: 0 A. The general belief of some that free trade doesn't increase wealth. X G) B. To protect certain groups of individuals. 0 c. To protect national security. 0 D. To offset unfaircompetiticn from foreign producers. O E. Allofthe above. X Incorrect X Question 16 0 points A large surplus in the capital account is accompanied by: A. A large deficit in the balance of payments. B. A large future deficit in the capital account. . A large decit in the current account. D. A large surplus in the balance of payments. E. A large surplus in the current account. @0000 X Incorrect X Question 19 0 points A Which of the following transactions would be recorded as a credit in the U.S. current account? A. A Japanese bank's purchase of IBM stock (IBM is an American-owned firm). )B. A Japanese consumer's purchase of a computer produced in the U.S. by a U.S. firm. C. An American consumer's purchase of a Japanese-made VCR. ) D. A German citizen receives a $50 dividend check on shares of stock she owns in a U.S. corporation. X Q E. An American tourist's payment to a Japanese hotel. X Incorrect