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Borrowings from abroad is recorded in the capital account of balance of payment.
True/False
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- If a Canadian corporation sells a product to the United States and uses the proceeds to purchase a product manufactured in United States, then Canadian net exports _____, and net capital outflows _____." Borrowings from abroad is recorded bin the capital account of BOP" True/Falsea rise in interest rsates is expected to lead to an appreciation of the currency, and a drop in interest rates is expected to lead to a depreciation. true or false
- A new accountant works on the Balance of Payments of a country and records the following into the financial account.Which is the only one recorded correctly? Select one: a. Transfer of ownership of assets b. External assets c. Trade in goods d. Imports of services e. Incomes paid to people working in a country temporarilyThe U.S. government gives $1,000,000 to Somalia. In the U.S. balance of payments, the gift of funds is recorded as a ______ to the ________ account and as a ______ to the ________ accountIncrease in foreign income will _______ net export but depreciation of domestic currency will ________ net export. Increase: Decrease Increase: Increase Decrease: Increase Decrease: Decrease
- In an economy:- Gross domestic capital formation = $70 million Depreciation = $35 million We have to calculate the value of net domestic capital formationOther things being equal, an increase in a country's interest rates will cause its currency to depreciate. True False If the U.S. dollar had a value equal to 1 euro a year ago and is now worth 1.2 euros, we say that the euro has appreciated over the past year. True FalseIf $2.00 U.S. bought $2.35 Canadian dollars in 2002 and in 2005 it bought $2.55 Canadian dollars, then; Group of answer choices the U.S. dollar depreciated against the Canadian dollar. the U.S. dollar weakened against the Canadian dollar. the U.S. dollar appreciated against the Canadian dollar. the Canadian dollar appreciated against the U.S. dollar.
- Display graphically changes in the current value of domestic currency, if the domestic currency depreciation at a significant rate is expected.Suppose the dollar depreciates relative to foreign currencies. If U.S. firms have domestic content below 100%, the benefit to domestic firms is _____ (greater or less) than the benefit if U.S. producers had domestic content of 100%.The trade weighted exchange rate for the New Zealand dollar is the rate of exchange between the New Zealand dollar and: (Pick either a,b,c, or d) a) The currencies of countries operating floating exchange rates b) the currencies of its main trading partners c) the currencies of its neighboring countries d) the currencies of countries it has trading agreements with
