Stage 5 Testing 2:True-False Statements
In this part of the test,you will read ten statements about the information presented in the lecture.First read the statement carefully.Then check your notes to decide whether the statement is true or false.If it is true,write a T in the blank space before the statement; if it is false,write an F in the blank.
1._______Transactions in goods,services and financial assets across national borders are defined as international transactions.
2._______A country’s balance of payments presents a summary of the country’s monetary transactions with the large trading nations of the country.
3._______Current transfers are unilateral because they indicate nothing to be received in return.
4._______When a country has a current account deficit,it means that the country is using resources from other countries and owes money to those countries.
5._______When Mr.Wang,a Chinese immigrant to Germany,is transferring his factory equipment to Germany,this transfer is recorded only under the goods category of the current account.
6._______When wholly-owned subsidiaries are established overseas,they fall into the category of foreign direct investment.
7._______Bank loans with a maturity of one year are termed short-term capital and entered in the short-term capital account accordingly.
8._______When a central bank participates in the foreign exchange market and nets a profit,its transactions are recorded in the income account.
9._______We may expect that the country will increase its imports and encourage capital outflows if it has a significant balance-of-payments surplus.
10._______If a country is experiencing a serious balance-of-payments deficit,we may expect that its national currency is likely to rise in value over time.