QUESTION 1
If a real asset located in Brazil is sold to someone in the US, the transaction would result in a credit in Brazil's balance of payments.
True
False
6.25 points
QUESTION 2
The balance of payments for a given nation records
only imports and exports of good and servies
only foreign direct investment and portfolio investments between nations
both imports and exporst of good and servieces as well as forein direct investment and portolio investments between nations
QUESTION 36.25 points
Transactions between Canada and the rest of the world are shown below. Use the following information to answer the next four questions.
Canadian citizens receive C$5 million worth of dividends from foreign investments.
Imperial Oil (Canadian firm) invests C$60 million in overseas oil discovery.
Foreign tourists spend C$45 million in Canada.
Canadian government sells C$20 million worth of treasury securities to foreign nations.
Alcan (Canadian firm) sells C$8 million worth of aluminum to US companies.
Canadian government buys C$32 million worth of gold.
Canadian firm buys C$12 million worth of computer components from Sony.
Canada sends C$4 million in aid to Mexico.
Ford spends C$30 million in constructing an assembly plant in Canada.
Find Canada's balance of trade. Enter your final answer in terms of millions of dollars. Do not enter a non-numerical value when inputting your answer.
6.25 points
QUESTION 4
Find the capital account balance (in millions of C$).
Find Canada's current account balance. Enter your final answer in terms of millions of dollars. Do not enter a non-numerical value when inputting your answer.
Canada's capital account balance suggests that it is a net supplier of capital to the rest of the world.
Suppose a nation has a current account surplus. This surplus implies
Suppose that the value of the dollar moves from £=$1.5 to £=$1.75. What effect would this have on the UK's balance of trade, all else being equal?
There is an inverse relationship between the demand for US exports and the US inflation rate.
Transactions between Great Britian and the rest of the world are shown below. Use the following information to answer the next two questions.
British companies sell 50 million pounds worth of bonds to foreigners.
British government sells 20 million pounds of treasury securities to foreigners.
British citizens receive 2 million pounds in interest from foreign investments.
British companies buy 85 million pounds worth of American produced steel.
GlaxoSmithKline (British firm) sells 40 million pounds of pharmaceutical drugs abroad.
British government buys 15 million pounds of gold in FX market.
British bankers invest 12 million pounds in foreign banks.
Find Great Britian's balance of trade. Enter your answer in terms of millions of pounds. Do not use the pound sign or any other non-numerical value when inputting your answer.
Transactions between Great Britian and the rest of the world are shown below. Use the following information to answer the next two questions.
British companies sell 50 million pounds worth of bonds to foreigners.
British government sells 20 million pounds of treasury securities to foreigners.
British citizens receive 2 million pounds in interest from foreign investments.
British companies buy 85 million pounds worth of American produced steel.
GlaxoSmithKline (British firm) sells 40 million pounds of pharmaceutical drugs abroad.
British government buys 15 million pounds of gold in FX market.
British bankers invest 12 million pounds in foreign banks.
Find Great Britian's balance of trade. Enter your answer in terms of millions of pounds. Do not use the pound sign or any other non-numerical value when inputting your answer.
