Question

Which of the following transactions will be recorded on the current account of the balance of...

Which of the following transactions will be recorded on the current account of the balance of payments (BoP)?

a. International transactions related to the purchase and sale of Treasury bills.

b. International transactions related to the purchase and sale of stocks.

c. International transactions related to unilateral transfers.

d. International transactions related to the purchase and sale of currency.

e. International transactions related to the purchase and sale of real estate.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The correct answer is (c) International transactions related to unilateral transfers

Transactions that are recorded under Current account are flow of funds from trade of goods and services , unilateral transfers, etc. Hence option (c)  International transactions related to unilateral transfers is recorded in current account.

Transactions that are recorded under Capital account are investment on lands, investment on fixed assets, etc. and Transaction of real estate, stocks and currency are all recorded under Financial account(Note former capital account has been decomposed into capital account and financial account by IMF).

Hence among all of this only International transactions related to unilateral transfers is recorded under current account.

Hence, the correct answer is (c) International transactions related to unilateral transfers

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is a not correct statement about balance of payments? a. BoP consists...
Which of the following is a not correct statement about balance of payments? a. BoP consists of current account, capital account, and statistical adjustment. b. Current account consists largely of Trade balance, and non-trade balance (factor income & cash transfers). c. Trade balance refers to the record of inflow and outflow of funds (payments) arising from international trade. d. Capital account refers to the record of inflow and outflow of funds (payments) arising from international capital movement (investment). e. BOP...
8 How would each of the following transactions show up on the U.S. BOP(Balance of Payments)...
8 How would each of the following transactions show up on the U.S. BOP(Balance of Payments) accounts? Payment of $50 million in Social Security to U.S. citizens living in Costa Rica. service, debit net investment income, credit unilateral transfers, debit capital account, debit goods/merchandise, credit
Calculate trade, current account, financial account, and overall balances from the Balance of Payments of Argentina...
Calculate trade, current account, financial account, and overall balances from the Balance of Payments of Argentina in 1999 and 2000. Please answer the following questions: What seems to have been the primary driver of the current account in 1999 and 2000? Argentina’s BOP was clearly deteriorating during this period. What would it forecast to happen to the country’s currency board regime? 1999 2000 A. CURRENT ACCOUNT GOODS EXPORTS: CREDIT 23309 26341 GOODS IMPORTS: DEBIT 24103 23889 Trade Balance SERVICES: CREDIT...
Which of the following is NOT included in the U.S. current account? A. U.S. unilateral transfers...
Which of the following is NOT included in the U.S. current account? A. U.S. unilateral transfers to foreigners. B. U.S. foreign direct investment abroad. C. Interest paid by the U.S. on bonds held by foreigners. D. U.S. compensation received by foreigners. E. U.S. exports.
2. Current, financial, and capital accounts Consider the following table showing hypothetical balance-of-payments data for the...
2. Current, financial, and capital accounts Consider the following table showing hypothetical balance-of-payments data for the United States. Complete the table by selecting the correct value for each missing entry. Balance-of-Payments (Billions of dollars) Current Account U.S. merchandise exports +65 U.S. merchandise imports -68 Merchandise trade balance -3 U.S. service exports +30 U.S. service imports -65    Services balance -35 Goods and services balance -38 Net investment income from abroad -2 Net unilateral transfers -5 Current account balance -45   ...
13. In which journal is a sale on account recorded? A. Cash Receipts B. Cash Payments...
13. In which journal is a sale on account recorded? A. Cash Receipts B. Cash Payments C. Purchases D. Sales E. None of the above 14. In which journal is a purchase return recorded? A. Cash Receipts B. Cash Payments C. Purchases D. Sales E. None of the above 15. In which journal is the cash sale of merchandise inventory recorded? A. Cash Receipts B. Cash Payments C. Purchases D. Sales E. None of the above 16. In which journal...
5. If there are no transactions in the official financing account of a country's balance of...
5. If there are no transactions in the official financing account of a country's balance of payments, it is likely that: A) this country must not be engaging in international trade. B) this country has a pegged exchange rate and persistent surpluses on its balance of payments. C) the exchange rate is being determined freely in the foreign-exchange market. D) the central bank has pegged the exchange rate so that the current and capital accounts sum to zero. E) there...
BALANCE OF PAYMENT Suppose the following data represent Zambia's international transactions measured in Kwacha Merchandise exports...
BALANCE OF PAYMENT Suppose the following data represent Zambia's international transactions measured in Kwacha Merchandise exports 18 Merchandise imports 13 Change in foreign assets in Zambia 15 Change in assets abroad 11 Exports of services 10 Imports of services 8 Income receipts on investment 8 Income payments on investment 13 Unilateral transfers 6 What is its balance on capital account? * 0 points Your answer What is its balance on current account? * 0 points Your answer What is Zambia’s...
Which of the following is NOT considered a receipt in the balance of payments? Select one:...
Which of the following is NOT considered a receipt in the balance of payments? Select one: a. import of services b. exports of goods c. capital inflows d. unilateral transfers to U.S. citizens
If the overall balance in the balance of payments account is in _____, there can be...
If the overall balance in the balance of payments account is in _____, there can be an accumulation of official reserve assets by the country or a decrease in foreign official reserve holdings of the country's assets. surplus deficit equilibrium remission Answer: The current account balance does NOT equal: the difference between domestic product and domestic expenditure. the difference between national saving and domestic investment. net foreign investment. the difference between government saving and government investment. Answer: A nation is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT