Question 1

The travel services provided to international travelers by United Airlines would be recorded in the current account subcategory of:

Accepted Answer

A)  services trade.
B)  income trade.
C)  goods trade.
D)  current transfers.

Question 2

An American tourist purchases a leather jacket while in Italy.Which of the following statements is true?

Accepted Answer

A)  The leather purchase would be considered an import for the U.S.BOP.
B)  This transaction would be properly accounted for in the Current Account of the U.S.BOP.
C)  The leather purchase is considered an import of a good,and thus,considered part of the balance of trade as well.
D)  All of these statements are true.

Question 3

A country with a managed float that wishes to WEAKEN its currency may choose to raise domestic interest rates to attract additional capital from abroad.

Accepted Answer

A) True 
 B)False

Exam 3: The Balance of Payments

An American tourist purchases a leather jacket while in Italy.Which of the following statements is true?

Correct Answer
verified

A country with a managed float that wishes to WEAKEN its currency may choose to raise domestic interest rates to attract additional capital from abroad.

Correct Answer
verified

The travel services provided to international travelers by United Airlines would be recorded in the current account subcategory of:

Correct Answer
verified

Exam 3: The Balance of Payments

An American tourist purchases a leather jacket while in Italy.Which of the following statements is true?

Correct AnswerverifiedShow Answer

A country with a managed float that wishes to WEAKEN its currency may choose to raise domestic interest rates to attract additional capital from abroad.

Correct AnswerverifiedShow Answer

The travel services provided to international travelers by United Airlines would be recorded in the current account subcategory of:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified