int. trade chapter 6

A perfect balance of payments always equals zero.

• true

• false

A Balance of Payments shortage suggests a strong currency.

• true

• false

he current account includes income from patents and copyrights.

• true

• false

The capital account tracks the buying and selling of patents.

• false

• true

The financial account monitors government gold reserves.

• false

• true

The balance of payments is a record of a country's international transactions in:

• Goods only

• Services only

• Goods, services, and assets

A Balance of Payments surplus indicates:

• Exports are less than imports

• Exports are equal to imports

• Exports are greater than imports

Which of the following is NOT a reason why the balance of payments is important?

• To understand a country's economic relationship with others

• To indicate a country's currency strength

• none of the above

The current account of the balance of payments focuses on:

• Investments

• Trade in goods and services

• International borrowing

this equation (net direct investment + net portfolio investment+ errors and omissions) is to calculate the

• Balance of financial account

• Balance of capital account

• none of the above

• the current account balance