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1) "Money is pouring into US financial market," suggests that a

Economics

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1) "Money is pouring into US financial market," suggests that

a. the current and capital accounts are positive

b. the current account is positive and the capital accounting is negative

c. the current account is negative and the capital account is positive

d. the current and capital accounts are negative

 

2.  In which of the following cases will the current account of country X increase?

a. Country X sends cash to aid war victims in Country Y

b. Investors from country X receive dividend payments from businesses operating in country Y

c. Immigrants working in Country X send part of their wages back to their home country

d. The government of Country X imports jet fighters from Country Y

 

3.  In an open economy, a drop in national saving causes a trade                  and increased

                        foreign countries.

a. surplus, lending to 

b. surplus, borrowing from 

c. deficit, lending to 

d. deficit, borrowing from 

 

4.  The US has persistently run trade deficits since 1980 because 

a.  domestic investment and national saving have risen

b.  domestic investment has risen

c.  domestic investment and national saving have fallen

d.  national saving has fallen

 

5.  Which of the following are included in the current account?

a.  net exports

b.  net interest from the ownership of foreign assets

c.  net transfers from foreign countries

d.  all of the above