44) In 2007 the United States posted a current account deficit of -$731 billion.

Question

44) In 2007 the United States posted a current account deficit of -$731 billion. The bulk of the negative value came from 44) ______ A) a goods trade deficit. B) an income trade deficit. C) a net transfer deficit. D) an income balance deficit. 46) The BOP must be in balance but the current account need not be. 46) ______ A) True B) False 50) Which of the following would NOT be considered a typical BOP transaction? 50) ______ A) A U.S. tourist purchases gifts at a museum in London. B) The U.S. subsidiary of European financial giant, Credit Suisse, pays dividends to its parent in Zurich. C) Toyota U.S.A. is a U.S. distributor of automobiles manufactured in Japan by its parent company. D) All are example of BOP transactions. 55) Regime structures like the gold standard required no cooperative policies among countries, only the assurance that all would abide by the "rules of the game." 55) ______ A) True B) False 57) In the decade since 2000, the U.S. has experienced its largest bilateral trade deficits with the countries of China and Japan. 57) ______ A) True B) False

Explanation / Answer

In 2007 the United States posted a current account deficit of -$731 billion. The bulk of the negative value came from  goods trade deficit. Current accounnt defiict comprises of goods and service deficits.

The BOP must be in balance but the current account need not be. This is True. BOP is a sum of current and capital account. Overall BOP needs to be balanced.

c. All of the above are the examples of BOP transactions.

d.

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