When each international transaction undertaken by the residents of a country are entered as a debit and credit entry of equal size, into the balance of payments, the method is known as.

Related MCQs

• If Debit balance in the balance of payment accounts are greater than the Credit balance it leads to
• Unlike the balance of payments, the balance of international indebtedness indicates the international:
• When all of the debit or credit items in the balance of payments are combined:
• ______________ is a summary statement of all economic transactions of the residents of a nation with the residents of Rest of the World (ROW) during a particular period of time.
• The value to American residents of income earned from overseas investments shows up in which account in the U.S. balance of payments?
• _______________are receipts which the residents of a country receive for free, without making any present or future service transaction in return.
• Country A has 100 units of labor and Country B has 200 units of labor. Both countries produce computers and Web pages. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 Assume free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to Web pages will be:
• Country A and Country B produce computers and Web sites. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 At which of the following relative prices (computers in terms of Web sites) will Country B produce both goods under free trade?
• All of the following are debit items in the balance of payments, except:
• The balance of international indebtedness is a record of a country’s international: