Determine which account of the Balance-of-Payments is affected the following transaction: A local parent sends 500 Euros to his/her son who is studying engineering at a German universi Select one: O a. Capital Account Foreign Direct Investment O b. Current Account - Transfers O c. Capital Account Portfolio Investment O d. Current Account - Imports O e. Current Account Exports
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- Determine which 'account of the Balance-of-Payments is affected the following transaction: A local parent sends 500 Euros to his/her son who is studying engineering at a German university. Select one: O a. Capital Account Foreign Direct Investment O b. Capital Account - Portfolio Investment Current Account - Transfers Od. Current Account - Imports O e. Current Account ExportsDetermine which account of the Balance-of-Payments is affected the following transaction: National Commercial Bank, a local company, pays US$1 million in dividends to foreign shareholders. Select one: a. Current Account Transfers O b. Current Account Imports O c. Capital Account Portfolio Investment d. Capital Account Foreign Direct Investment O e. Current Account - ExportsConsider the balance-of-payments accounting information for Lalaland in 2010 as shown in the table below. All values are in billions of dollars and any variables not provided below have a value of zero. Exports 560 Imports Net foreign-investment income Capital outflows Capital inflows 350 - 50 255 95 What is the current account balance for Lalaland in 2010? ..... O A. $160 billion O B. $260 billion OC. - $260 billion O D. - $160 billion O E. $0
- Consider the balance-of-payments accounting information for Lalaland in 2010 as shown in the table below. All values are in billions of dollars and any variables not provided below have a value of zero. Exports Imports Net foreign-investment income Capital outflows Capital inflows 500 510 - 40 180 90 What is the net change in the stock of Lalaland's investments abroad in 2010? ..... O A. an increase of $30 billion O B. a decrease of $30 billion OC. a decrease of $50 billion O D. an increase of $50 billion O E. insufficient information to determineThe demand for Australian dollars in the foreign exchange market equals 14000 – 3000e and thesupply of Australian dollars in the foreign exchange market equals 2000 + 2000e, where e is thenominal exchange rate expressed in euros per Australian dollar. If the Australian dollar is fixed at 2euros per Australian dollar, then to maintain this fixed rate, what is the required change in theReserve Bank of Australia’s holdings of euros? 1increase by 4000 euros 2decrease by 2000 euros 3decrease by 4000 euros 4increase by 2000 eurosQ.1.11 What is a foreign exchange rate? (a) The rate at which the currency of one country trades for the goods ofanother country.(b) The rate at which one country’s goods trade for those of anothercountry.(c) The rate at which currencies of different countries are exchanged.(d) The rate at which one country’s currency trades for gold provided byanother country.Q.1.12 As a result of more Americans visiting South Africa, we can expect, ceteris paribus:(a) an appreciation of the rand relative to the dollar.(b) a depreciation of the rand relative to the dollar.(c) an appreciation of the dollar relative to the rand.(d) that it will cost South Africans more to visit the United States.Q.1.13 What is a tariff? (a) A form of subsidy.(b) A tax on imported goods.(c) A tax on foreign property.(d) A form of quota.
- If German demand for Canadian lumber increases, the supply of Canadian dollars to the foreign-exchange market will OA. decrease, increase B. increase, remain the same OC. decrease, decrease i OD. remain the same, remain the same OE. increase, decrease and the demand for euros will thereforeIf foreigns investing in the United States (i.e. DI) is less than U.S. investors investing abroad (i.e. FI), ________. A. there is a financial account surplus B. the dollar is depreciating C. the dollar is appreciating D. the relative price of U.S. imports is increasing E. there is a financial account deficitWhat is the difference between depreciation and devaluation? O There is no difference. O Depreciation refers to a fixed exchange rate, while devaluation refers to a floating exchange rate. O Depreciation refers to a floating exchange rate, while devaluation refers to a fixed exchange rate.
- 3 / 3 100% 每 8. The price of a laptop in the United States is $1,000. The price of a car in taly is 10,000 euros The current exchange rate rs09 curos per dollr. Ifa laptop is exported from the United Startes to Italy with no barriers to trade, what will be the price of the aptop in Italy? Ira car is imported to the United States from luh with barriers to trade, what will be the price of the crin ahe Ented Statres? Suppose the dollar appreciates by 0pereent aganscihecomo. Whr will be the price ofa computer exporied from the United States changem ltaly? -Suppose thhe dollarapprecites br 10 percentagamst the curoWt willbethe price of a car inmported to the Enred States from Ital chnge m tdhe Eaed Statese (8 marks) (2marks) 2marks) (2marks] (2marks)25. Suppose there are two countries, B and C, that have no trade and no financial transac- tions with any countries except cach other. B imports a total of goods worth 10 million bollars from C, where a bollar is a unit of B's currency. B has no exports. Which of the following must be true? A. B has a capital account deficit B. C has a current account deficit C. C is buying assets from B. D. The exchange rate of collars per bollar is bigger than 1, where a collar is a unit of C's currency.6. How is the United States net foreign wealth affected by a depreciation of the US Dollar?