Chapter 6, Problem 32QA

1. In order to reduce its current-account deficit, the United States would NOT do which of the following? a . raise national product relative to national spending b. decrease savings relative to domestic investment c . increase savings relative to domestic investment d . reduce the federal budget deficit

From the following, please identify the 2 statements that are true as well as the 2 statements that are false. A) The most common approach to translate budgets and compare a budget with actual performance uses the forecast rate.   B) A major force leading to the convergence of accounting standards is the global separation of capital markets.   C) For U.S. companies, foreign-currency-denominated receivables and payables give rise to exchange gains and losses only when the dollar weakens against the foreign currency   D) According to the translation process in the United States, companies recast their financial statements consistent with U.S. GAAP, and then translate them into U.S. dollars

14. Countries should take measures to counterbalance deficit in their balance of payments a. False b. True