Balance of Payments: In vs Out

2 questions on this screen, from this outline item's own pool, so some will test a rule you met earlier in the unit. Pick an answer, say how sure you are, then reveal. Being sure and wrong is the most useful thing that can happen here, and the coach treats it that way.

Question 1Exam level

What does a country's balance of payments record?

A. Its transactions with the rest of the world: what flows in and what flows out B. Only its government's tax revenue and spending C. Only the value of its currency against a single benchmark D. Only its stock market's total capitalization

How sure are you?

Sure Fairly sure Guessing

Correct: A. The balance of payments is the record of a country's transactions with the rest of the world.

B. That describes fiscal policy or the federal budget, not the balance of payments.

C. A currency's value against a benchmark is an exchange rate, a separate factor.

D. Stock market capitalization is unrelated to a country's payments with the rest of the world.

Unit: SIE outline 1.3.3

Question 2Exam level

The dollar weakens against the euro. Which U.S. group is helped?

A. U.S. importers B. U.S. exporters C. U.S. travelers going to Europe D. Nobody; exchange rates do not affect trade

How sure are you?

Sure Fairly sure Guessing

Correct: B. A weak dollar makes American goods cheaper for foreign buyers, which helps U.S. exporters.

A. A weak dollar makes imports cost more for U.S. buyers, hurting importers, not helping them.

C. A weak dollar makes European travel more expensive for U.S. travelers, not less.

D. Exchange rates directly affect the price at which trade settles.

Unit: SIE outline 1.3.3

Now answer