Which of the following statements about the accounts in the balance of payment is correct? A....
Which of the following statements about the accounts in the balance of payment is correct?
A.
A country that runs a current account surplus must also run a financial account surplus.
B.
A country that runs a current account surplus may run a financial account surplus or deficit.
C.
A country that runs a current account surplus must run a financial account deficit.
D.
None of the above statements is correct
Homework Answers
The statement B is correct, " A country that runs a current account surplus may run a financial account surplus or deficit"
The BOP of each country depends on trade of goods and services (recorded in Current Account) and Capital flows (recorded in Capital or financial account). Both can be negative or positive depending on economy.
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Which of the following statements about the accounts in the
balance of payment is correct?
A....
Which of the following statements regarding the balance of payments account are correct, ceteris paribus? Select...
Which of the following statements regarding the balance of payments account are correct, ceteris paribus? Select all correct answers: a) An increase in dividends from foreign portfolio investments would lead to an increase in the current account. b) A current account surplus will always lead to an increase in the home country’s official foreign exchange reserves. c) An increase in the trade deficit would lead to an increase in the current account. d) A country with a current account deficit...
Please answer all, or as many of the following. Thank you. 1. Country A runs current...
Please answer all, or as many of the following. Thank you. 1. Country A runs current account surpluses. Which statement below is correct? (a) Country A is a lender in international capital markets. (b) Country A is a borrower in international capital markets. (c) Country A is a creditor in international capital markets. (d) Country A is a debtor in international capital markets. 2. Country B runs twin deficits. Which statement below is correct? (a) Country B runs fiscal deficits...
Which of the following is NOT true about this national income equation: S + (T - G) = I + CA A) For the current account,...
Which of the following is NOT true about this national income equation: S + (T - G) = I + CA A) For the current account, CA, to improve, we may have to invest less than otherwise would be the case. B) For the current account, CA, to improve, we may have to save less to maintain the same amount of investment that includes foreign saving. C) For the current account, CA, to improve, the government may have to run...
Which of the following statements about the balance sheet is most correct? a. The balance sheet...
Which of the following statements about the balance sheet is most correct? a. The balance sheet provides information about the financial position of an organization as of a moment in time. b. The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. c. The balance sheet is affected by changes in the net income of the organization. d. Statements a and c are both correct. e. Statements a, b, and c are all...
Which of the following statements about the balance sheet is most correct? O The balance sheet...
Which of the following statements about the balance sheet is most correct? O The balance sheet provides information about the financial position of an organization as of a moment in time. O The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. O The balance sheet is affected by changes in the net income of the organization. O Statements a. and c. are both correct. O Statements a, b, and c. are all...
Which of the following statements about financial statement forecasting methods is most correct? For-profit and not-for-profit...
Which of the following statements about financial statement forecasting methods is most correct? For-profit and not-for-profit businesses use totally different approaches to financial forecasting. In the constant growth (percentage of sales) method, after the first pass the balance sheet is balanced by adjusting the cash account. In the constant growth (percentage of sales) method, after the first pass the balance sheet is balanced by adjusting the equity account. In the constant growth (percentage of sales) method, the balance sheet is...
13.Which of the following statements about an adjusted trial balance is not correct? A It is...
13.Which of the following statements about an adjusted trial balance is not correct? A It is prepared at the beginning of the year. B It is used to prepare financial statements. C It is prepared to ensure that total debits equals total credits D It is prepared after the adjusting journal entries have been made.
If the current account balance is negative and the capital account balance is zero, _________. a....
If the current account balance is negative and the capital account balance is zero, _________. a. the financial account balance must be negative b. the financial account balance must be twice the current account balance c. there is net inflow of foreign investment d. there is net outflow of foreign investment e. capital inflows must be less than capital outflows Initially the exchange rate between the Australian dollar and yen is ¥80=A$1. Suppose that the exchange rate changes to ¥75...
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called...
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called prepaid liabilities and are classified as liabilities. O Prepaid accounts are current expense accounts and are reported on the income statement. O Prepaid accounts are also called prepaid expenses and are considered assets. O Prepaid accounts are another name for accounts receivable and are reported as an asset.
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called...
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called prepaid expenses and are considered assets. O Prepaid accounts are another name for accounts receivable and are reported as an asset. O Prepaid accounts are current expense accounts and are reported on the income statement. O Prepaid accounts are also called prepaid liabilities and are classified as liabilities.
Which of the following statements about the balance sheet is most correct? O The balance sheet provides information about the financial position of an organization as of a moment in time. O The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. O The balance sheet is affected by changes in the net income of the organization. O Statements a. and c. are both correct. O Statements a, b, and c. are all...
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called prepaid liabilities and are classified as liabilities. O Prepaid accounts are current expense accounts and are reported on the income statement. O Prepaid accounts are also called prepaid expenses and are considered assets. O Prepaid accounts are another name for accounts receivable and are reported as an asset.
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called prepaid expenses and are considered assets. O Prepaid accounts are another name for accounts receivable and are reported as an asset. O Prepaid accounts are current expense accounts and are reported on the income statement. O Prepaid accounts are also called prepaid liabilities and are classified as liabilities.
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