Which of the following is NOT a major subaccount of the Balance of Payments? A) the financial account B) the accounts payable C) the capital account D) the current account
Which of the following international transactions would NOT be counted as a balance of payments (BOP) transaction? A) An American tourist purchases cheese in Milwaukee, Wisconsin. B) The U.S. subsidiary of a British firm pays profits (dividends) back to its parent firm in London. C) A Canadian lumber baron purchases a U.S. corporate bond through an investment broker in Seattle. D) All of the above are considered BOP transactions.
The balance of payments as applied to a course in international finance may be defined as: A) the amount still owed by an exporting firm after making an initial down payment. B) the amount still owed by governments to the International Monetary Fund. C) the measurement of all international economic transactions between the residents of a country and foreign residents. D) the amount of a country's merchandise trade deficit or surplus.
Balance of payment (BOP) data may be important for any of the following reasons: A) BOP data helps to forecast a country's market potential, especially in the short run. B) The BOP is an important indicator of a country's foreign exchange rate. C) Changes in a country's BOP may signal a change in controls over payment of dividends and interest. D) all of the choices provided above