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Balance of Trade and Balance of Payments

Total questions: 14

Worksheet time: 28mins

Name
Class
Date
1.
The current account shows ...
a)
international movement of goods and services
b)
international movement of capital
c)
foreign exchange market
d)
international movement of investments
2.
An increase in the exchange value of one nation's currency in terms of currency of another nation's is called...
a)
Depreciation of currency
b)
Appreciation of currency
3.
Each month, Ima Newhere, who recently arrived in the United States, sends half her paycheck to her sister in Poland.
a)
credit
b)
debit
4.

Each month, Ima Newhere, who recently arrived in the United States, sends half her paycheck to her sister in Poland.

a)

Current account

b)

Capital/Financial account

5.
BMW pays $1 million to a U.S. shipper for transporting cars from Germany to the United States.
a)
credit
b)
debit
6.

BMW pays $1 million to a U.S. shipper for transporting cars from Germany to the United States.

a)

Current account

b)

Capital/Financial account

7.

A Chinese company sells $1 million worth of socks to the U.S. army.

a)

credit

b)

debit

8.
Andre Prenoor, U.S. entrepreneur, invests $50 million to develop a theme park in Malaysia.
a)
credit
b)
debit
9.

Andre Prenoor, U.S. entrepreneur, invests $50 million to develop a theme park in Malaysia.

a)

Current account

b)

Capital/Financial account

10.

Harley-Davidson USA purchases $25 million in production machinery from a Japanese company.

a)

Current account

b)

Capital/Financial account

11.

Jorge Martinez from Spain buys a shopping center in Florida.

a)

credit

b)

debit

12.

Jorge Martinez from Spain buys a shopping center in Florida.

a)

Current account

b)

Capital/Financial account

13.
Any nation experiencing a current account deficit must also be running a financial account surplus?
a)
True
b)
False
14.

A Chinese company sells $1 million worth of socks to the U.S. army.

a)

Current account

b)

Capital/Financial account