.) How might you try to fix various balance of payments problems? (Be sure to discuss current account, capital account, currency policy,monetary and fiscal policy
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- 1.) How might you try to fix various balance of payments problems? (Be sure to discuss current account, capital account, currency policy,monetary and fiscal policy
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- 1. How would each of the following transactions show up on the U.S balance of payments accounts? Identify the current account balance, financial account balance, and reserve balance? (a) An American company sells $30,000 worth of machinery to a British company. (b) an American woman visits her husband in Japan. She spends $5,000 in Japan before returning to the United States. (c) the US Red Cross sends $20,000 worth of flood-relief goods to Chile; (d) an American purchases $5,000 worth of French bonds; (e) a US bank lends $10,000 to a Canadian firm for 90 days.D2) Economics Consider that a country's capital account balance has a $10 million deficit, and its current account has a $240 million surplus. What will its financial account balance have? $230 million deficit $230 million surplus $200 million deficit $170 million deficit $170 million surplus3. What will happen to a country that fixes the price of foreign exchange below equilibrium?
- 5. How exchange rates can affect a firm’s global sales.?2 - What is the other name for the difference between export and import?A) Net exportsB) Foreign trade deficitC) Foreign TradeD) Budget deficitE) Current Account DeficitQuestion 1 Determine which account of the Balance-of-Payments is affected by each of the following transactions and the impact on the market for foreign exchange. (a) Your older brother who lives in London sends money to pay your tuition. (b) Some of the tuition money your older brother sends is used to buy a laptop from Amazon.com. (c) Carnival Cruise Lines pays for half of the cost of building the new cruise pier in your country. (d) Celine Dion performs at the Jamaica Jazz & Blues Festival. (e) In order to diversify its asset holdings a local asset management firm, buys shares of Ford Motor Company on the New York Stock Exchange.
- 45) Assume that Outland specialises in producing skateboards and Inland specialises in producing surfboards. After trade, Outland exports 500 skateboards and imports 100 surfboards. The rate of exchange A) is 1/5:1 skateboards to surfboards. B) is 5:1 skateboards to surfboards. C) is 1:5 skateboards to surfboards. D) cannot be determined from this information3. Considering the foreign exchange market, identify at least THREE causes for a decrease in the demand for dollars.1)Consider a nation in which the volume of goods and services is growing by 5 percent per year. a. If a country’s economic size is growing faster than the rest of the world, then the share of the world’s goods and services that are produced in this country will fall. other countries will also have similar rates of growth. this country will gain influence in the international sector. the balance of trade will worsen. b. If a country’s living standards are increasing at 5 percent, this implies that prices are decreasing at a rate of 5 percent below the population growth. output is increasing at a rate of 5 percent above the population growth. output is increasing at a rate of 5 percent below the population growth. prices are increasing at a rate of 5 percent above the population growth.
- 9) Which of the following can lead to an increase in the demand for Japanese yen compared to the U.S. dollar? a) an increase in the relative price of Japanese-made goods b) an increase in the interest rate in Japan relative to the U.S. rate c) a decrease in the amount of yen bought by the U.S. government d) a decrease in the demand for goods made in Japan 10) Which of the following statements is NOT true? a) If a country's exports exceed its imports, then there is a trade surplus. b) If the balance of trade is positive, then the balance of payments is also positive. c) If a country's balance of trade is positive, then its exports exceed its imports. d) A country's balance of trade includes trade in both goods and services.1. How would the following transactions affect Malaysian exports, imports and net exports？ A）A Thai citizen shops at a store in Kota Bahru17 For balance of payments statistics, visible trade refers to trade-in Select one: a. Gold b. Goods only c. None of these d. Goods/commodities e. Service only
