Which of the following will cause Nation A's reserves account in the balance of payments to become more positive?
a. Increased holdings of official gold holdings.
b. Nation A's central bank receives more borrowing rights at the International Monetary Fund.
c. Nation A's central bank decreases its holdings of convertible foreign currencies.
d. All of the above will cause the reserves account to become more positive.
e. None of the above will cause the reserves account to become more positive.
Question 2 - Which of the following is a major reason for offshoring?
a. The gradual reduction in information and communication technologies.
b. The fragmentation of production processes.
c. The gradual decline in worldwide competition.
d. All of the above are major reasons for offshoring.
Question 3 - When a country has flexible exchange rates the:
a. Reserves account must equal zero.
b. Reserves account must be positive.
c. Reserves account must be negative.
d. Current account must equal minus the reserves account.
e. Reserves account can be positive or negative.
Question 4 - Which of the following is a major reason for offshoring?
a. Advances in information and communication technologies.
b. The inability of companies to fragment production processes.
c. The gradual decline in worldwide competition.
d. All of the above are major reasons for offshoring.
Question 5 - If Country A's reserve account is equal to +300 billion, then:
a. There is an excess demand for Country A's currency in the foreign exchange market that is being met by the central bank selling enough domestic currency to make up the difference.
b. There is an excess supply of Country A's currency in the foreign exchange market that is being met by the central bank buying enough domestic currency to make up the difference.
c. Country A's reserves account cannot 300 billion. It must equal 0.
d. Country A's current account must equal = -300 billion.
e. Country A's current account minus capital account must equal-300 billion.
Question 6 - Which of the following is a major reason for offshoring?
a. Increased global demand for services,
b. Greater worldwide competition,
c. The gradual diminishing of global technological advances,
d. All of the above are reasons for offshoring.
Question 7 - If Country A's central bank wanted to increase the value of its currency, its reserves account in the balance of payments would:
a. Become more negative.
b. Become more positive.
c. Not change.
d. Change only if there were no offsetting changes in the net errors and omissions account.
Question 8 - Which of the following is a major reason for offshoring?
a. The gradual diminishing of global technological advances.
b. Increased global demand for services.
c. Reductions in international trade barriers.
d. All of the above are major reasons for offshoring.
Question 9 - Which of the following is a major reason for offshoring?
a. Global deregulation.
b. Increased global demand for services.
c. The gradual diminishing of global technological advances.
d. All of the above are major reasons for offshoring.
Quick Reply
