Macroeconomics - p.405-426

A country’s ___________ are a summary of the country’s transactions with other countries.

• Balance of Payments Accounts

• Balance of Payments on the Current Account

• Balance of Payments on Goods and Services

• Balance of Payments on the Financial Account

A country’s ___________, or the ___________, is its balance of payments on goods and services plus net international transfer payments and factor income.

• Balance of Payments on the Current Account; Current Account

• Merchandise Trade Balance; Trade Balance

• Balance of Payments on the Financial Account; Financial Account

• Balance of Payments on Goods and Services; Goods and Services Account

A country’s ___________ is the difference between the value of its exports and the value of its imports during a given period.

• Balance of Payments on Goods and Services

• Balance of Payments on the Current Account

• Balance of Payments on the Financial Account

• Balance of Payments Accounts

The ___________, or ___________, is the difference between a country’s exports and imports of goods.

• Merchandise Trade Balance; Trade Balance

• Balance of Payments Accounts; Payment Balance

• Balance of Payments on the Current Account; Current Account

• Balance of Payments on the Financial Account; Financial Account

A country’s ___________, or simply the ___________, is the difference between its sales of assets to foreigners and its purchases of assets from foreigners during a given period.

• Balance of Payments on the Financial Account; Financial Account

• Balance of Payments on the Current Account; Current Account

• Merchandise Trade Balance; Trade Balance

• Balance of Payments on Goods and Services; Goods and Services Account

Currencies are traded in the ___________. The prices at which currencies trade are known as ___________.

• Foreign Exchange Market; Exchange Rates

• Merchandise Trade Balance; Trade Balance

• Currency Market; Exchange Rates

• Currency Exchange Market; Currency Rates

When a currency becomes more valuable in terms of other currencies, it ___________, and when it becomes less valuable in terms of other currencies, it ___________.

• Appreciates; Depreciates

• Decreases; Increases

• Depreciates; Appreciates

The ___________ is the exchange rate at which the quantity of a currency demanded in the foreign exchange market is equal to the quantity supplied.

• Equilibrium Exchange Rate

• Stable Exchange Rate

• Currency Rate of Equilibrium

• Currency Demand Rate

___________ are exchange rates adjusted for international differences in aggregate price levels.

• Real Exchange Rates

• Nominal Exchange Rates

• Aggregate Exchange Rates

• Disaggregate Exchange Rates

The ___________ between two countries’ currencies is the nominal exchange rate at which a given basket of goods and services would cost the same amount in each country.

• Purchasing Power Parity

• CPI Currency Rate

• Nominal Exchange Rate

• Aggregate Exchange Rate