Balance of Payments
This account records a country’s net exports, income from abroad, and net transfers.
What is the current account?
This term refers to the price of one currency in terms of another.
What is an exchange rate?
These are taxes imposed on imports to protect domestic industries or generate revenue.
What are tariffs?
If inflation in Japan rises faster than in the U.S., the yen will likely do this against the U.S. dollar.
What is depreciate?
This is the largest planet in our solar system.
What is Jupiter?
When a country imports more than it exports, it results in this.
What is a trade deficit?
When the demand for a currency increases, this happens to its value.
What is appreciation?
These are limits on the quantity of a good that can be imported into a country.
What are quotas?
When U.S. interest rates rise, demand for this increases, leading to an appreciation of the U.S. dollar.
What is the U.S. dollar?
The famous painting "Mona Lisa" was painted by this artist.
Who is Leonardo da Vinci?
This account tracks foreign investment in a country, including purchases of assets and stocks.
What is the financial (capital) account?
The exchange rate is 1.2 euros per US dollar. If a restaurant meal costs 30 Euros in Paris, what is its dollar cost to a US restaurant?
What is $25.
The purchase of US government Bonds by Japanese investors will be included in Japans....
What is CFA (capital financial account)
If the U.S. imports more from China than it exports, this will affect the U.S. balance in this way.
What is a current account deficit?
This mammal, known for its nocturnal habits and ability to turn its head almost completely around, is often associated with wisdom.
What is an owl?
If a country has a capital account surplus, this means foreign investors are doing this in that country.
What is buying more domestic assets?
If a country's interest rates rise, this will likely cause their currency to do this.
What is appreciate?
Governments often impose these to protect domestic jobs but they can also cause inefficiencies.
What are trade barriers?
If the European Central Bank raises interest rates, the euro will likely do this relative to the dollar.
What is appreciate?
What is Ms. Dorsas dogs name
Mocha
A trade surplus means that exports exceed imports, resulting in this kind of balance.
What is a positive current account balance?
This is the global marketplace where currencies are traded.
What is Foreign Exchange Market? (FOREX)
This is the advantage a country has when it can produce a good at a lower opportunity cost than another country.
What is comparative advantage?
When investors lose confidence in a country’s economy, its currency tends to do this.
What is depreciate?