Balance of Payments Quiz

Which of the following would be recorded as a debit item in the Balance of Payments?

• A foreigner purchasing goods from the country

• The country receiving foreign aid

• The country sending money as foreign aid

• Foreign tourists spending money in the country

Unilateral transfers in the Current Account include all of the following EXCEPT:

• Foreign aid

• Remittances from citizens working abroad

• Foreign direct investments

• Charitable donations

Double-entry bookkeeping in the Balance of Payments ensures that:

• All positive balances are equal to all negative balances

• A credit always has a corresponding debit

• Exports are greater than imports

• The financial account is always in surplus

A Balance of Payments surplus occurs when:

• A country’s debits exceed its credits

• A country’s credits exceed its debits

• The Current Account is in deficit

• There are no unilateral transfers

What is the primary purpose of the Balance of Payments (BOP)?

• To record all domestic transactions within a country

• To track all financial transactions between a country and the rest of the world

• To determine a country’s tax revenue

• To record the population growth rate

What is the title of Rolaine’s topic?

• Macro Meaning of the Current Balance

• Macro Meaning of the Overall Balance

• Financial Account

• Balance

B = CA + ?

• OR

• QR

• FA

• FDI

B + OR = ?

• 1

• 20

• 0

• 5

Which is a type of official reserve asset?

• Land

• Bonds

• Investments

• Gold

True or False. If a country is receiving more capital from abroad than it is sending out (e.g., foreign investors are buying more of the country's assets or making more direct investments), the financial account will show a surplus