A credit item in the balance of payments is:
A. an item for which the country must be paid.
B. any loan given out by the country.
C. any imported item.
D. an item that creates a monetary claim owed to a foreigner.
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In a nation's balance of payments, which one of the following items is always recorded as a positive entry?
A. Changes in foreign currency reserves
B. Imports of goods and services
C. Military foreign aid supplied to allied nations
D. Purchases by foreign travelers visiting the country
Every international exchange of value is entered into the balance-of-payments accounts _____ time(s).
A. one
B. two
C. three
D. four
The sum of all of the debit items in the balance of payments:
A. equals the overall balance.
B. equals the sum of all credit items.
C. equals ‘compensating’ transactions.
D. equals the errors and omissions.
Which of the following capital transaction items is entered as a debit in the U.S. balance of payments?
A U.resident transfers $100 from his account at Credit Suisse in Basel (Switzerland) to his account at a San Francisco branch of Wells Fargo Bank.
B. A French resident transfers $100 from his account at Wells Fargo Bank in San Francisco to his Credit Suisse account in Basel.
C. A U.resident sells his IBM stock to a French resident.
D. A U.resident sells his Credit Suisse stock to a French resident.
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