Trade Deficit quiz 1

Question 1

Trade Deficit occurs when the imports of the country are ____than the exports of the country.

Answer 1

higher

Question 2

An International Transaction Account (also known as ___________) records all economic transactions between ….

Answer 2

Balance of Payments
the residents and non-residents of the country.

Question 3

The other name for Trade Deficit is…

Answer 3

Negative Balance of Trade (BOT)

Question 4

All international transactions of ______, ______, and a ________are considered in the calculation of the Trade Deficit.

Answer 4

goods
services
combination of goods and services

Question 5

The current account records all ____________ and ___________ between countries; a negative balance indicates a ________

Answer 5

tangible and intangible transactions

Negative Balance of Trade.

Question 6

The capital account tracks ________, measuring the _____ AND _____ of funds between countries; a deficit means there is more capital outflow than inflow.

Answer 6

capital expenditures
inflow and outflow

Question 7

The financial account tracks transactions of _______ by residents and non-residents.

A ______ indicates more foreign investment in domestic assets

A ____shows domestic investors are investing in foreign assets.

Answer 7

financial assets

surplus

deficit

Question 8

Trade Deficit ($) =

Answer 8

Total Value of Exports – Total Value of Imports