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1、Chapter1balanceofpaymentsBalanceofPaymentsAccounting1Balanceofpaymentsa)isdefinedasthestatisticalrecordofacountry’sinternationaltransactionsoveracertainperiodoftimepresentedintheformofadouble-entrybookkeepingb)providesdetailedinformationconcerningthedemandandsupplyofacountry’scurrencyc)canb
2、eusedtoevaluatetheperformanceofacountryininternationaleconomiccompetitiond)alloftheaboveAnswer:d2Generallyspeaking,anytransactionthatresultsinareceiptfromforeignersa)Willberecordedasadebit,withanegativesign,intheU.S.balanceofpaymentsb)Willberecordedasadebit,withapositivesign,intheU.S.balanc
3、eofpaymentsc)Willberecordedasacredit,withanegativesign,intheU.S.balanceofpaymentsd)Willberecordedasacredit,withapositivesign,intheU.S.balanceofpaymentsAnswerd3Generallyspeaking,anytransactionthatresultsinapaymenttoforeignerse)Willberecordedasadebit,withanegativesign,intheU.S.balanceofpaymen
4、tsf)Willberecordedasadebit,withapositivesign,intheU.S.balanceofpaymentsg)Willberecordedasacredit,withanegativesign,intheU.S.balanceofpaymentsh)Willberecordedasacredit,withapositivesign,intheU.S.balanceofpaymentsAnswera)4SupposetheMcDonaldsCorporationimports100tonsofCanadianbeef,payingforitb
5、ytransferringthefundstoaNewYorkbankaccountkeptbytheCanadianBeefConglomerate.i)PaymentbyMcDonaldswillberecordedasadebitj)Thedepositofthefundsbythesellerwillberecordedasadebitk)PaymentbyMcDonaldswillberecordedasacreditl)ThedepositofthefundsbythebuyerwillbecreditAnswer:a5Sincethebalanceofpayme
6、ntsispresentedasasystemofdouble-entrybookkeeping,a)Everycreditintheaccountisbalancedbyamatchingdebitb)Everydebitintheaccountisbalancedbyamatchingcreditc)a)andb)arebothtrued)NoneoftheaboveAnswerc)6Acountry’sinternationaltransactionscanbegroupedintothefollowingthreemaintypes:a)currentaccount,
7、mediumtermaccount,andlongtermcapitalaccounta)currentaccount,longtermcapitalaccount,andofficialreserveaccountb)currentaccount,capitalaccount,andofficialreserveaccountc)capitalaccount,officialreserveaccount,tradeaccountAnswer:c6Invisibletraderefersto:a)ser