What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.) Colgate Inc (U.S.) receives profits from its foreign affiliates. Payment is made in U.S. dollars.
a. Debit the U.S. financial account; credit the U.S. current account.
b. Credit the U.S. financial account; debit the U.S. current account.
c. Debit the U.S. financial account; credit the U.S. financial account.
d. Credit the U.S. financial account; debit errors and omissions.
Question 2 - If you marry your electrician:
a. Real and nominal GDP rise.
b. Real GDP rises but nominal GDP falls.
c. Real GDP falls, but nominal GDP rises.
d. Real and nominal GDP fall.
e. There is no change in real or nominal GDP.
Question 3 - What effect does the following transaction have on the U.S. balance of payments? (Choose the proper debit and credit entries.)Ford Motor Company (U.S.) purchases automobile parts from Mexico and agrees to pay the Mexican supplier in Mexican pesos in 90 days.
a. Debit the U.S. financial account; credit the U.S. current account.
b. Credit the U.S. financial account; debit the U.S. current account.
c. Debit the U.S. financial account; credit the U.S. financial account.
d. Credit the U.S. financial account; debit errors and omissions.
Question 4 - All of the following are shortcomings of GDP as a measure to human well-being except it:
a. Excludes black market and underground transactions.
b. Excludes quality improvements that do not increase price or quantity sold.
c. Excludes the value of leisure time.
d. Counts harmful and dangerous output the same as useful output.
e. Excludes international transactions.
Question 5 - What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)Ford Motor Company (U.S.) purchases automobile parts from Mexico and agrees to pay the Mexican supplier in U.S. dollarsin 90 days.
a. Debit the U.S. financial account; credit the U.S. current account.
b. Credit the U.S. financial account; debit the U.S. current account.
c. Debit the U.S. financial account; credit the U.S. financial account.
d. Credit the U.S. financial account; debit errors and omissions.
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