4. USAEO International and Development

Balance Of Payments — Quiz

Test your understanding of balance of payments with 5 practice questions.

Practice Questions

Question 1

Which of the following is included in the current account of a country’s balance of payments?

Question 2

If a country has a current account surplus and a capital account deficit, what does this imply about the country’s balance of payments?

Question 3

A depreciation of a country’s currency is most likely to have which of the following effects on its current account balance in the short run?

Question 4

Which of the following transactions would be recorded as a credit in the capital account of a country’s balance of payments?

Question 5

Suppose Country A has a current account deficit of $50 billion and a capital account surplus of $55 billion. What is most likely the value of the financial account balance, assuming no errors and omissions?