
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
expand_more
expand_more
format_list_bulleted
Question
In reality the balance of payments may not balance due to
A) net trading by the Bank of England. B) net errors and omissions.
C) The balance of payments always balances. D) exports not equalling imports.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Explain the international balance of payments (BOP) and the reason for its use. Examine how surpluses and deficits in the balance of payments (BOP) affect exchange rates.arrow_forwardWhich of the following is one of the indicators of a rising balance of payments deficit? Multiple Choice An appreciation of that country's currency. An excess of exports over imports. The amount of that country's foreign reserves starts to fall. A decrease in the amount of that country's currency held by other nations.arrow_forwardFor a small open economy with free capital mobility, an increase in the world real interest rate would decrease net exports. increase net exports. increase the current account balance. decrease the current account balance.arrow_forward
- If a currency has a fixed exchange rate, Group of answer choices other currencies cannot be exchanged for the pegged currency. a country's trade balance will remain constant. it is not subject to the forces of supply and demand. the country's central bank must respond to market pressures to maintain the peg.arrow_forwardA nation is considered to be a(n) current account is in deficit. in the international market, if its importer exporter borrower lenderarrow_forwardThe following table shows a hypothetical balance-of-payments statement for the United States. All figures are in billions of dollars. Complete the table by filling in the missing cells. Balance of Payments (Billions of U.S. dollars) Current Account Goods and Services Exports Goods and Services Imports Trade Balance Income (net) Current Account Balance Capital Account 200 -182 -10 U.S. Capital In flow U.S. Capital Outflow Capital Account Balance Statistical Discrepancy According to the table, the United States is running a trade. The balance of payments equals__________ billion. 80 -60 _(deficit,surplus).arrow_forward
- If Americans decide to buy more goods from India, and the Indian producers use all of the money to buy American goods, the U.S.: current account deficit and capital account surplus have both decreased. current account deficit and capital account surplus have both increased. current account deficit has decreased and the U.S. capital account surplus has increased. current and capital accounts have not changed.arrow_forwardThe balance of payments is 1) the value of goods and services bought and sold in the world market. 2) a summary record of a country's purchases and sales of goods and services in the world market. 3) a summary record of a country's economic transactions with foreign residents and governments. 4) the value of merchandise goods bought and sold in the world market.arrow_forwardList the relationships that define the balance of payments, and explain where in the Hong Kong balance of payments an entry would be made for each of the following: (a) Hong Kong people donate some goods to Macau in December 2019. (b) The Hong Kong government sells a 5-year bond to a prince in Saudi Arabia.arrow_forward
- If the current account is in surplus and the capital account is zero, then the financial account must be in deficit. the trade balance must be in deficit. the balance of payments must be in deficit. there is a capital inflow.arrow_forwardExplain how exchange rates may impact the performance of international equity investment.arrow_forwardIf our (U.S.) current account is in deficit we are buying foreign financial assets we must have a government budget deficit we are supplying foreigners with our savings we are borrowing from foreignersarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education


Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education