Tackle the Test: Multiple-Choice Questions

1. Question

   The current account includes which of the following?

   
   

   
   

   1. payments for goods and services

      
      
   
   

   2. transfer payments

      
      
   
   

   3. factor income

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   The current account includes which of the following?

2. Question

   The balance of payments on the current account plus the balance of payments on the financial account is equal to

   A.

   zero.

   B.

   one.

   C.

   the trade balance.

   D.

   net capital flows.

   E.

   the size of the trade deficit.

   The balance of payments on the current account plus the balance of payments on the financial account is equal to

3. Question

   The financial account was previously known as the

   A.

   gross national product.

   B.

   capital account.

   C.

   trade deficit.

   D.

   investment account.

   E.

   trade balance.

   The financial account was previously known as the

4. Question

   The trade balance includes which of the following?

   
   

   
   

   1. imports and exports of goods

      
      
   
   

   2. imports and exports of services

      
      
   
   

   3. net capital flows

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   The trade balance includes which of the following?

5. Question

   Which of the following will increase the demand for loanable funds in a country?

   A.

   economic growth

   B.

   decreased investment opportunities

   C.

   a recession

   D.

   decreased private savings rates

   E.

   government budget surpluses

   Which of the following will increase the demand for loanable funds in a country?