A reward for consuming rather than saving B) opportunity cost of time C) expecta

Question

A reward for consuming rather than saving B) opportunity cost of time C) expectation of a future return on in D) price paid for the use of money 67) I f a nation's can concl ns goods exports are Sss biltion, while its goods imports are ude with certainty that this nation has es S50 bni A) balance B) positive balance on current account C) positive balance on goods and services of trade (goods) surplus 68) Answer the question on the basis of the following 2012 balance of payments d ) f for the hypothetical nation of Zabella. All figures are in billions of dollars Current Account 380 70 1) Goods Exports 2) Goods Imports +20 3) Exports of Services -25 +5 -5 4) Imports of Services 5) Net Investment Income 6) Net Transfers Financial Account 7) Foreign Purchases of Assets in the United States -23 8) US Purchases of Assets Abroad Capital Account 9) Balance on Capital Account Refer to the given data. Zabella has a balance of trade (goods): A) deficit of $10 billion. C) deficit of $5 billion. B) surplus of $10 billior D) surplus of $5 billion 69) Assume that, under a system of floating exchange rates, Mexicans deci their investments in the United States. As a result: A) the peso will depreciate and the dollar will appreciate. B) the peso and the dollar will both depreciate. C) the peso will appreciate and the dollar will depreciate. D) the peso and the dollar will both appreciate. in international trade specialize in production ba B) relative inflationn D) relative levels of Countrie dvantage. nge rates. UC Browser

Explanation / Answer

Answer of Question No 67:

The total goods Exports = $ 55 billion

The total goods Imports = $ 50 billion

So the suplus of trade (goods) = $ (55 - 50) billion = $ 5 billion

So the correct answer is (a) i.e. blance of trade (goods) surplus.

Answer of Question no 68:

The total goods Exports = $ 80 billion

The total goods Imports = $ 70 billion

So the suplus of trade (goods) = $ (80 - 70) billion = $ 10 billion

So the correct answer is (b) i.e. surplus of $10 billion.

Answer of Question no 69:

Though the Mexican wnats to invest in United States currency that indicates the currency of United States i.e. dollar will be appreciated and the currency of Mexico i.e. Peso will be depreciated.

So the correct answer is (a).

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