
APM Unit 6 Lesson
Flashcard
•
Architecture
•
3rd Grade
•
Practice Problem
•
Hard
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1.
FLASHCARD QUESTION
Front
What does the balance of payments statement summarize?
Back
Economic transactions between the U.S. and other countries
2.
FLASHCARD QUESTION
Front
What is recorded in the current account of the balance of payments?
Back
Import and export of goods and services
3.
FLASHCARD QUESTION
Front
What indicates a deficit in the current account?
Back
More dollars are sent abroad than received
4.
FLASHCARD QUESTION
Front
What does a surplus in the capital account suggest?
Back
Foreign investment in the U.S. exceeds American investment abroad
5.
FLASHCARD QUESTION
Front
How does the Federal Reserve manage a balance of payments deficit?
Back
By adding foreign currencies to the official reserves
6.
FLASHCARD QUESTION
Front
What is the trade balance?
Back
The difference between the value of exports and imports
7.
FLASHCARD QUESTION
Front
What role do foreign exchange reserves play?
Back
Maintaining the stability of a country's currency
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