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Balance of payments

Total questions: 10

Worksheet time: 5mins

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/capital 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/capital account
c)
official reserves
3.

Leroy Jenkins, a US citizen, 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 on the US balance of payments as

a)

current account

b)

financial/capital account

c)

official reserves

5.

An Italian tourist paying for a night in a London hotel would count as:

a)

A debit on the UK balance of payments

b)

A credit on the UK balance of payments

6.

An Italian tourist paying for a night in a London hotel would appear on the UK balance of payments:

a)

In the current account

b)

In the capital/financial accounts

7.

The acquisition of a UK football club by a rich foreign investor would count as

a)

A debit on the capital and financial account

b)

A credit on the current account

c)

A debit on the current account

d)

A credit on the capital and financial account

8.

Profits from a UK football club, paid back to a wealthy foreign owner, would count as:

a)

A credit as foreign direct investment on the capital/financial account

b)

An outflow investment incomes on the current account

c)

Import expenditure on the balance of trade of services

d)

Current transfers

9.

Big Dave, a UK citizen, buys a villa in France. This would be registered on:

a)

The Balance of Trade in Goods

b)

The Balance of Trade in Services

c)

The Capital/Financial Account

d)

Investment incomes

10.

The stock of physical and financial assets held by a country around the world is known as the

a)

International Investment Position

b)

Portfolio Investment Flows

c)

Investment income

d)

Foreign Direct Investment