A country’s balance of payments records:
A. the prices that a country pays for its imports and the prices that the country receives for its imports.
B. the flows of value between that country’s residents and residents of the rest of the world during a period of time.
C. capital gains and losses on a country’s international assets.
D. the value of a country’s holdings of foreign assets, minus the value of foreign holdings of the country’s assets.
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.
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
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