What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)U.S. residents invest in Swiss bank accounts by converting their U.S. dollar savings deposits into Swiss francs and then investing them.
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 - GDP is measured in terms of market value because:
a. Actually, GDP is not measured as a market value. GNP measures market values.
b. Otherwise, it would be impossible to combine all the heterogeneous goods and services consumed in a nation.
c. Otherwise, it would be impossible to combine all the heterogeneous goods and services produced in a nation.
d. Otherwise, it would be impossible to combine domestically produced goods and services with foreign goods and services consumed by the public.
e. Otherwise, it would be impossible to separate the domestically produced goods and services from foreign goods and services consumed by the public.
Question 3 - A current account deficit can be good for a nation if the:
a. Balance of trade is positive.
b. Nation is selling investment goods to the rest of the world.
c. Nation is the recipient of foreign capital flows that have a positive contribution to the economy.
d. Nation's reserve assets are falling.
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