Question

1. Assume that a green card holder fly with American Airlines from NYC to Paris. The related transactions will be reported on the Balance of Payments.

a. True

b. False

2. Goodwill sent $500,000 worth of clothing to Ubatuba. This item will be reported as Credit in the “Unrequited transfers/transfer payments” section of the Current Account

a. True

b. False

3. The Cash Flow Statement in accounting is the counterpart to the Balance of Payments.

a. True

b. False

Answer 1

1. Assume that a green card holder fly with American Airlines from NYC to Paris. The related transactions will be reported on the Balance of Payments.

a. True

as the green card holder is an permanent resident of U.S.

2. Goodwill sent $500,000 worth of clothing to Ubatuba. This item will be reported as Credit in the “Unrequited transfers/transfer payments” section of the Current Account

b. False

as it will be included as a foreign aid

3. The Cash Flow Statement in accounting is the counterpart to the Balance of Payments.

a. True

because cash flow statement shows inflow and outflow of cash in a company or business firm and balance of payment shows the inflow and outflow of cash of a country.