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IB Economics - Balance of Payments

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

This account records a nation's imports and exports of goods, services, net investment income, and net transfers.

a)

current account

b)

financial account

c)

official reserves

2.

This account records flows of money from the purchase and sale of real estate and financial assets between countries.

a)

current account

b)

financial account

c)

official reserves

3.

Leroy Jenkins buys stock in a Japanese video game company. This transaction would be recorded as

a)

a credit to the US

b)

a debit to the US

4.

Leroy Jenkins buys stock in a Japanese video game company. This transaction would be recorded as

a)

current account

b)

financial account

c)

official reserves

5.
The Malaysian government buys a new Boeing 787 from the U.S. This transaction is recorded as
a)
a credit to the U.S.
b)
a debit to the U.S.
6.

The Malaysian government buys a new Boeing 787 from the U.S. This transaction is recorded as

a)

current account

b)

financial account

c)

official reserves

7.

The U.S. Federal Reserve sells $4 million worth of Treasury bonds to a Chinese investor. This would be recorded as

a)

current account

b)

financial account

c)

official reserves account

8.
The U.S. Federal Reserve sells $4 million worth of Treasury bonds to a Chinese investor. This would be recorded as
a)
a debit to the U.S. 
b)
a credit to the U.S.
9.

What is not a part of the BoP

a)

Investment Account

b)

Current Account

c)

Financial Account

d)

Capital Account

10.

What is not a part of the Current Account Balance

a)

Buying firms

b)

Net Income Flows

c)

Net Transfers

d)

Balance of trade in goods and services

11.

Which of the following is a part of the financial account?

a)

Inheritance taxes

b)

Transactions in patents

c)

Reserve assets

d)

None of the above

12.

The U.S. Federal Reserve sells $4 million worth of Treasury bonds to the Chinese Central Bank. This would be recorded as

a)

Official reserves in China's BOP

b)

Official reserves in U.S.' BOP