The country of Pimm exports £500 billion worth of goods and services and imports £400 billion worth of goods and services. Net income paid abroad is £50 billion, and net transfers are £25 billion. The current account balance is ________.

£175 billion
£975 billion
£125 billion
£25 billion

The current account balance is -£30 billion, the capital and financial account balance is £25 billion, and the balancing items is zero. The change in reserve assets is _______ billion, and the official UK reserves __________.

£5 billion; increase
£5 billion; increase
£5 billion; decrease
£5 billion; decrease

If, this year, a country has borrowed more from the rest of the world than it loaned to the rest of the world but has loaned more to the rest of the world than it has borrowed from the rest of the world during its entire history, then the country is currently a _______ and also a _______.

debtor nation; net borrower
net borrower; debtor nation
debtor nation; creditor nation
net borrower; creditor nation

A country has a government budget deficit and a private sector surplus. If the government budget deficit increases, and the private sector surplus decreases, __________________.

net exports increase, decrease, or remain constant
net exports decrease
net exports decrease or remain constant
net exports increase

The table gives some of the entries in the national income accounts. The government budget is a _______, and the private sector has a _______.

deficit of £50 billion; deficit of £25 billion
surplus of £50 billion; deficit of £25 billion
deficit of £50 billion; surplus of £25 billion
surplus of £50 billion; surplus of £25 billion

The table gives some of the entries in the national income accounts. What is the value of exports?

£300 billion
£25 billion
£25 billion
£250 billion

If the pound-dollar exchange rate changes from £0.60 per dollar to £0.65 per dollar, then the pound has _______ against the dollar and the dollar has _______ against the pound.

depreciated; depreciated
appreciated; depreciated
appreciated; appreciated
depreciated; appreciated

Suppose that a pound buys 200 yen. If a VCR sells for 18,600 yen in Japan, the price of the VCR in pounds is ______________.

£172.98
£186.00
£200
£93

If the United Kingdom has a flexible exchange rate, the supply curve of sterling assets is shown by __________.

a vertical line
a horizontal line
an upward-sloping line
a downward-sloping line

If the United Kingdom has a fixed exchange rate, the supply curve of sterling assets is shown by __________.

a vertical line
a downward-sloping line
an upward-sloping line
a horizontal line