Capital Flows and the Balance of Payments
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Questions and Answers

What was the net inflow of cash for the Costas from their new loan?

  • $19,500 (correct)
  • $-25,000
  • $5,500
  • $25,000
  • In the context of the Costas' financial year, what was the net inflow of cash from sales and purchases of goods and services?

  • $-10,000 (correct)
  • $-70,000
  • $10,000
  • $70,000
  • What does Row 1 of Table 41.2 in the context of the U.S. balance of payments accounts represent?

  • Net income from foreign investments
  • Payments from foreigners to the United States (correct)
  • Value of foreign aid received by the United States
  • Payments from the United States to foreigners
  • What is the net inflow of cash for the United States as a whole according to Table 41.2?

    <p>Equal to the sum of cash coming in from all sources</p> Signup and view all the answers

    What does the last row in the balance of payments accounts represent?

    <p>Sum of cash coming in from all sources</p> Signup and view all the answers

    What do economists use to keep track of international transactions?

    <p>Balance of payments accounts</p> Signup and view all the answers

    What kind of items did residents of the United States sell to residents of other countries in 2008?

    <p>Bonds, wheat, and airplanes</p> Signup and view all the answers

    What is the total value of the stuff sold by people living in the United States to people living in other countries in 2008?

    <p>$3.5 trillion</p> Signup and view all the answers

    In which state did the Costas own a small artichoke farm?

    <p>California</p> Signup and view all the answers

    What is a summary of a country’s transactions with other countries?

    <p>Balance of payments accounts</p> Signup and view all the answers

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