Which of the following constitutes the largest component of the world’s international reserve assets?
A. Gold
B. Special drawing rights
C. IMF reserve positions
D. Foreign currencies
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The difference between a country’s purchases of foreign assets minus foreign purchases of the country’s assets during a period of time is:
A. net official reserves.
B. net domestic investment.
C. net foreign investment.
D. net foreign surplus.
A country experiencing a current account surplus:
A. needs to borrow internationally.
B. is able to lend internationally.
C. must also have had a surplus in its overall payments balance.
D. spends more than it earns on its merchandise and service trade, international income payments and receipts and international transfers.
If the overall balance in the balance of payments account is in _____, there can be an accumulation of official reserve assets by the country or a decrease in foreign official reserve holdings of the country's assets.
A. surplus
B. deficit
C. equilibrium
D. remission
The current account balance does NOT equal:
A. the difference between domestic product and domestic expenditure.
B. the difference between national saving and domestic investment.
C. net foreign investment.
D. the difference between government saving and government investment.
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