The answer is Option (A) A surplus in the U.S. capital account
This surplus meant that foreign investors purchased more U.S. assets than U.S. investors purchased in foreign assets, investing more in the United States than the United States invested abroad. By economic definition, a country's current and capital account balances must offset one another.
A wealthy Japanese executive decides to buy a large amount of U.S. assets. This would contribute...
Question 24 A wealthy Japanese executive decides to buy a large amount of U.S. assets. This would contribute to y a deficit in the total balance of payments a deficit in the U.S.current account cu a surplus in the U.S. capital account a deficit in the US. capital account a surplus in the US current account
1. A currency market starts at equilibrium. The fed decides to increase the supply of u.s. dollars because of a new expansionary monetary policy. What happens to the amount of Mexican pesos that have to be given to recieve $1 in exchange? a) More pesos have to be given b)Less pesos have to be given c) the same number of pesos are given for $1 d)This effect cannot be determined e) none of the above 2. A few years ago,...
Americans demand Japanese yen in order to Select one: a. allow the Japanese to buy U.S. products. b. buy Japanese products. C. supply American goods in Japanese markets. d. balance the current account.
DQuestion 36 2 pts The following table shows the number of U.S. dollars required to buy one British pound and the number of U.S. dollars required to buy one euro between February 1, 2016, and September 1, 2016: U.S. Dollars Required U.S. Dollars to Buy 1 British Pound 1.429 Required to Buy 1 Euro 1.1092 Date February 1, 2016 March 1, 2016 1.425 April 1, 2016 1.432 May 1, 20161.452 June 1, 2016 1.420 July 1, 20161.313 August 1, 2016...
2. The below values are obtained from the 2018 U.S. Balance of Payments (in $ millions): • Exports of goods and services: $2,212,079 • Imports of goods and services: $2,712,639 (a) What is the Current Account balance in 2018? (b) Does the Current Account show a surplus or deficit? (c) Based on (b), does the Capital Account show a surplus or deficit?
QUESTIONS Suppose that the dollar amount of goods and services that Americans buy-that is import - in 2020 from all other countries will be the same as the amount that Americans bought from all other countries in 2019. Suppose further that in 2020 non-Americans will want to invest more in America than non-Americans invested in America in 2019. The result of the above two facts will be an American current account (or "trade) deficitin 2020 that is higher than the...
Questions: c) An emergency tariff on a wide range of imports would be effective in addressing U.S deficits and forcing other nations to purchase more U.S. exports; d) One reason the U.S. does not export more is lagging investment in domestic industries. Why Protectionism Cannot Cure the Trade Deficit The causal link between investment flows, exchange rates, and the balance of trade explains why protectionism cannot cure a trade deficit. In his 1997 book, One World, Ready or Not, Washington...
The diagram shows the market equilibrium exchange rate between the Japanese yen and the U.S. dollar (USD). Suppose that capital flows from the United States to Japan increase. Shift the demand and supply curves as appropriate. Quantity of yen This change in the exchange rate will result in the balances of payments on Japan's current account and financial account rising. o the balance of payments on Japan's current account falling as the balance of payments on Japan's financial This change...
Suppose that at the end of 2012, the value of U.S.-owned assets abroad is $15,888 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,953 billion. The net international investment position of the United States in 2012 isbillion. (Hint: Be sure to include a negative sign if the U.S. is experiencing debt.) Suppose that in 2013, the United States runs a current account surplus of $514 billion. If other factors remained constant, the...
capital account-current account financial account -japanese auto -chinese government -honduran worker -french company -u.k bonds -italian contrator The Balance-of-Payments (BOP) Explained Intemational trade invalves the sale other countries (imports) goods and services to residents in other countries (exports) and the purchasse of goods and services from residents Country's balance-of- payments accounts keep track of the payments to, and receipts from, other countries for a particular time period. These include payments to forelgners for imports of goods and services, and receipts...