Question

1. GDP =

a. GNP + net unilateral transfers.

b. GNP - net unilateral transfers.

c. GNP + balance on secondary income.

d. GNP - net receipts of production factor income coming from the rest of the world.

e. GNP + net receipts of production factor income coming from the rest of the world.

2. The spot exchange rate is the exchange that applies when:

a. you make a transaction today by purchasing one currency with another, executing the exchange of currencies immediately.

b. the volume on the currency market is low, i.e. "spotty", so exchange movements may be rapid with each trade.

c. you agree to make purchase one currency with another but the trading of the currencies happens, say, 3, 6, 9, or 12 months from now.

d. the exchange of currency is not electronic, but instead, you can see, i.e. "spot", the currency.

e. you agree to loan, i.e. "spot", the currency to another.

3. If Sweden's central bank sells US dollars to Swedish commercial banks in return for Swedish crowns, then according to IMF definitions, this transaction should show up in Sweden's

a. current account as a credit and in Sweden's financial account as a debit.

b. nonreserve financial account as a debit and in Sweden's official settlements balance as a credit.

c. capital account as a credit and in Sweden's financial account as a debit.

d. nonreserve financial account as a credit and in Sweden's official settlements balance as a debit.

e. capital account as a debit and in Sweden's financial account as a credit