EU34L1
1
A country's balance of payments accounts records all of the following items except ____________.
international lending
international borrowing
taxes and international transfer payments
international trading
2
The account that records the receipts from the sale of goods and services to foreigners, the payments for goods and services bought from foreigners, and gifts and other transfers received from and paid to foreigners is the ______________.
capital account
current account
change in reserves assets
international capital account
3
The capital and financial account measures ________________________.
capital produced outside of the United Kingdom minus capital produced inside the United Kingdom
all the international borrowing and lending transactions
capital used outside the United Kingdom that is financed inside the United Kingdom
capital used inside the United Kingdom but manufactured outside the United Kingdom
4
________ in official UK reserves is shown as _________________ in the balance of payments accounts.
A decrease; a negative amount
An increase; a negative amount
A decrease; the balancing item
An increase; a positive amount
5
A country that is borrowing more from the rest of the world than it is lending to it is called a _______, and a country that is lending more to the rest of the world than it is borrowing from it is called a _______.
gross borrower; gross lender
net borrower; net lender
borrower; lender
importer; exporter
6
A country that during its entire history has borrowed more from the rest of the world than it has lent to it is a _______, and a country that during its entire history has invested more in the rest of the world than other countries have invested in it is a _______.
debtor nation; investor nation
debtor nation; creditor nation
borrower nation; creditor nation
net borrower nation; net lender nation
7
The government budget surplus or deficit is equal to _____________________.
saving minus investment
taxes net of transfer payments minus government purchases of goods and services
exports minus imports
tariffs minus imports
8
The private sector surplus or deficit is equal to ____________________.
saving minus investment
income minus consumption minus investment
income minus consumption minus taxes
income minus consumption
9
A _________________ exchange rate is a system in which the value of a country's currency is pegged by the country's central bank.
fixed
flexible
managed
monetary
10
The sum of government debt held outside the Bank of England and the monetary base is ______________________.
the quantity of pounds sterling
M0
the sterling liabilities of the Bank of England
the demand for sterling assets