___ Balance = Income - Payments related to earned income and capital income (dividends and interest)
Income
Financial
Capital
If the current account balance is positive (Income higher than payments), the country is said to have a current account ___
The other answers are correct
Surplus
Deficit
If the joint balance of the current account and capital account is positive ___
We are in debt with the rest of the world
The rest of the world is in debt to us
The other answers are correct
The debt capacity of a country ___ a limit
The other answers are correct
Doesn't have
Has
A capital ___ occurs when a national resident buys a foreing financial asset
Inflow
The other answers are correct
Outflow
What is the correct formula?
Financial Account = Sales of domestic assets - Purchases of foreign assets
Financial Account = Sales of foreign assets - Purchases of domestic assets
The other answers are correct
Foreign deposits in Spain are a capital ___
Inflow
Outflow
The other answers are correct
When Spain invest abroad Spain becomes a ___ of the country in which it invest
Debtor
Creditor
The other answers are correct
When the balance of the financial balance is negative, Spain becomes a ___ country of the rest of the world
The other answers are correct
Debtor
Creditor
When Spain imports a car to the United States and pays for the car with a check for €20,000, when we are paying euros we are "___" euros
Selling
Buying
The other answers are correct
Suppose that Spain exports wine to the United States for an amount of $15,000. The wine company has received a check for $15,000 which is exchanged at the Central Bank for euros. Therefore, the Central Bank is buying dollars in exchange for euros, ___ thus the assets of the United States in the hands of Spain
The other answers are correct
Increasing
Decreasing
Suppose that Spain buys shares in an American company. This operation is recorded with a ___ sign in the Financial Account
Positive
Negative
The other answers are correct
A ___ balance in the Reserves Variation item indicates that foreigh assets in the hands of the Central Bank are increasing
The other answers are correct
Positive
Negative
The ___ exchange rate is the price in foreign currency of a unit of a national currency
Nominal
Simple
The other answers are correct
A ___ exchange rate is used as a means to control inflation
Floating
Fixed
The other answers are correct
A central bank could, for example, allow the price of a currency to float freely between ___
An upper and lower limit
The other answers are correct
A ceiling and floor price
If the euro/dollar exchange rate increases in the eurozone, imports ___
The other answers are correct
Increase
Decrease
In a country with the gold standard system, if domestic prices decrease, exports ___
Increase
Keep
Decrease
Some people hold the view that fluctuations in the amount of gold being mined contributed to the severity and duration of the ___
Financial Crisis
Great Depression of 1930s
The other answers are correct
In the IMF system, if the Central bank increases the supply of dollars, the euro/dollar exchange rate ___
Keeps
Increases
Decreases
Globalization, since the World War ___, is largely the result of planning by politicians to break down trade-difficult borders to increase prosperity and interdependence and, consequently, decrease the possibility of a future war
II
I
III
Since WWII, capital controls have been ___
The other answers are correct
Lowered
Increased
The Maastrich Treaty was approved in ___
1990
1991
1992
The interconectivity of markets means that an economic collapse in any given country ___ be contained
Can't
Can
The other answers are correct
About ___ of all Internet traffic uses English language
80%
50%
5%
One of the ___ effects of globalization is offshoring
The other answers are correct
Positive
Negative
The challenge for Andalusia in the future is to ___ its dependence on the export of energy products