Which of the following are parts of the Financial Account of the Balance of Payments? Answers: Direct Foreign Investments International portfolio Investments Income from Interest and dividends Only a and b All three are parts of the Financial Account

Q: Describe balance of payments on current account and balance of payment on financial account. Provide…

A: The balance of payment on current record - Balance of installments on current record estimates the…

Q: Examine how surpluses and deficits in the balance of payments (BOP) affect exchange rates.

A: Introduction - All central bank transactions are recorded in the account on the balance of payments…

Q: Changes in which of the following will cause a change in exchange​ rates?   A. consumer preferences…

A: Exchange rates is defined as the rate at which one currency is traded for another. So, there can be…

Q: Which of the following transactions represents a deficit in the current account of the U.S. balance…

A: Balance of payments: It refers to the difference between the money which is coming in the economy…

Q: Is monetary approach an automatic adjustment mechanism to correct a deficit in the balance of…

A: The exchange rate is the rate at which the currencies of two countries can be traded for each other.…

Q: An exchange rate is best described as? A)The price of goods in terms of a foreign currency B)The…

A: Exchange rate is are of two types: Fixed exchange rate and Flexible exchange rate. Fixed exchange…

Q: (Balance of Payments) Explain where in the U.S. balance of payments an entry would be recorded for…

A: Balance of Payments(BOP) is the difference between inflow and outflow of payments that take place in…

Q: Describe, with detailed explanations, the four components of the current account of the balance of…

A: The current account is used to measure the inflow and outflow of goods, investment incomes, transfer…

Q: Look at each of the cases below from the point of view of the balance of payments for Canada.…

A: The balance of payments (BOP) is basically a record of each payment or receipt made by one…

Q: Nation’s exchange rate value for its currency in foreign exchange markets.  A nation's balance of…

A: The exchange rate is the rate at which the currency of a nation is traded for the currency of…

Q: In the balance of payments statement, a current account surplus will be matched by a    capital and…

A: The Balance of Payment record the transactions in services, goods, and assets between residents of a…

Q: Describe the foreign exchange market and its components.

A: Foreign exchange market- it is a market, which is also known as forex and currency market. It is a…

Q: What do the plus signs and negative signs signify in the U.S. balance-of-payments statement? Which…

A: The balance of payment (BOP) includes the inflow and outflow of capital related to the country. It…

Q: Q.1.2 A deficit on the current account of a country's balance of payments can be financed by a…

A: NOTE:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Provide an example of a direct quote of an exchange rate

A: In the foreign exchange market, a direct quote is a rate quotation. It compares the value of one…

Q: what is the assignment problem

A: The objective of the assignment problem is the allocation of resources to an equal number of…

Q: A new country has been established on the moon and created a currency called cheesybits. Which of…

A: Answer: A transaction will be called a foreign exchange transaction if buyers and sellers are from…

Q: In the long run, exchange rates are typically affected by A. bond investors who seek long-term…

A: The exchange rates, in the long run, are affected by the bond investors seeking long-term returns.…

Q: What are the strong and weak points of the flexible exchange rate system? What are the strong and…

A: The flexible exchange rate the changes made in the exchange  rate according to buying and selling in…

Q: The current account balance consists of   A.the trade balance plus the services balance. B.net…

A: Current account is part of balance of payments.

Q: Explain how exchange rates can affect a firm’s global sales.

A: In the global market, products and services are traded on the basis of the exchange rate between the…

Q: - Explain very briefly about elasticity approach, national income approach, absorption approach, and…

A: Elasticity approach  The elasticity approach tries to predict the outcome policy changes will have…

Q: Determine    which    account    of    the    Balance-of-Payments    is    affected    by    each…

A: Desclaimer :- As you posted the multiple questions we are supposed to solve only the first one…

Q: In the Mundell-Flemming model with floating exchange rates, explain what happens to aggregate…

A: Answer: Introduction: Mundell-Flemming model explains open economy macroeconomic adjustments under…

Q: The gold standard caused the fluctuations of exchange rates between countries True or false

A: In the international market, the value of a currency depends upon its demand and supply, but its…

Q: ch is an incorrect statement about the balance of payments accounts? A. Any transaction involving a…

A: Which is an incorrect statement about the balance of payments accounts.

Q: Derive aggregate demand curve for open economy working under fixed exchange rate and flexible…

A: Meaning of Aggregate Demand and Aggregate Supply: The term aggregate demand refers to the…

Q: INSTRUCTIONS: For each of the following, explain the effect on a) current account OR capital account…

A: The nations around the globe are involved in the trading activities with each other. The nations…

Q: INSTRUCTIONS: For each of the following, explain the effect on a) current account OR capital account…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The following table shows a hypothetical balance-of-payments statement for the United States. All…

A: Trade balance refers that when the export and import in the country should be equal , balance trade…

Q: A point to the left of the balance of payments schedule (BP curve) would represent

A: Balance of Payment is a statement in which all the financial transactions made in a certain period…

Q: In the balance of payments statement, a current account surplus will be matched by a   capital and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: competitive effect shows how the change in exchange rate which alters the firm’s competitive…

A: As said in the above statement, a competitive effect shows how the change in exchange rate which…

Q: Comparison of Global Current Account surpluses (green and blue bars) and Global Current Account…

A: ANSWER   The symmetry in the chart can be described by the concept of international trade or Open…

Q: For each of the following, explain the effect on a) current account OR capital account b) balance of…

A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: Given the following information: Unilateral transfers: $120 billion, Exports in goods: $1,000…

A: Balance of payment - It is a statement of account of all economic transactions of one nation with…

Q: he following table shows a hypothetical balance-of-payments statement for the United States. All…

A:

Q: For each of the following, explain the effect on a) current account OR capital account b) balance of…

A: National income is the total amount of money that is earned in a country. National Income = C + I+ G…