英文国际金融练习卷chapter-2.pdfVIP

International Finance Assignment Problems (2) Name: Student No.: I. Choose the correct answer for the following questions (only ONE correct answer) (5 credits for each question, total credits 4 x 15 = 60) 1. According to the principle of the balanced balance of payments, if a country reduces its foreign exchange reserves by $20 million and the statistical discrepancy is in the credit entry of $5 million in a given period of time, the country runs __________ of its balance of payments during that period of time. A. $15 million deficits B. $25 million deficits C. $20 million deficits D. $5 million deficits 2. If a country’s domestic saving is greater than domestic investment, the country probably has __________. A. a current account surplus B. a net capital outflow 1 C. a current account deficit D. Both A and B are possible. 3. A debit entry in the balance-of-payments account represents a transaction that __________. A. a domestic resident receives a payment from abroad B. a domestic resident makes a payment to a foreign resident C. will improve the current account status D. will have no affects on the nation’s foreign exchange reserves 4. In terms of balance-of-payments account, which of the following would be recorded as a debit entry in the U.S. BOP? A. exports of merchandise B. exports of services C. purchase of the U.S. Treasury bonds by non-residents D. an increase of the deposit in a U.S. residents account at a foreign bank 5. A balance-of-payments deficit is defined as a situation in which __________. A. the value of