How is a country’s record of land transfers, inter-government payments, and migrant remittances abroad designated ?
Show answer Hide answer
Answer: B. capital account of the balance of payments
Explanation
The capital account records international land transfers, inter-government payments, and migrant remittances. Capital transfers and migrant remittances abroad are tracked in the balance of payments capital account. Land transfers and remittances constitute the capital account of the balance of payments. Balance of payments accounts divide international transactions into current, capital, and financial accounts. Capital accounts record non-produced and non-financial asset transfers internationally. Remittances sent home by migrant workers form a vital component of developing economies' capital flows.
Developing nations rely heavily on migrant remittances tracked in capital accounts. International financial institutions analyze capital account flows to assess global monetary stability. Government aid and debt forgiveness appear as capital transfers in national accounts. Balance of payments is the overarching ledger encompassing all international transactions. Financial account tracks investments in financial assets rather than land and remittances. Current account records trade in goods, services, and investment income instead.
Related questions
Q1. Why does the kinked demand curve arise ?
Show answer Hide answer
Answer: C. The oligopolist believers that competitors will match price cuts but not price rises
The kinked demand curve assumes oligopolists match price cuts but ignore price rises. Competitors matching price reductions while ignoring price increases creates the kink. Oligopolist expectations about rival reactions...
Q2. According to the quantity theory of money, shifts in ____ result in proportional changes in ____ but leave ______ unaffected?
Show answer Hide answer
Answer: C. nominal money, the price level, output and employment
According to the classical quantity theory of money, changes in nominal money affect the price level proportionally but leave real variables like output and employment unaffected. Proportional adjustments in prices ensur...
Q3. What is the rate of industrial advancement in the nation ?
Show answer Hide answer
Answer: D. 8.6%
Industrial sector performance figures for the referenced period cite an advancement rate of 8.6%. Economic data records the national industrial advancement rate precisely at 8.6%. Industrial growth reached eight point si...
Q4. How is the ledger tracking a country's import/export of goods and services, net investment income, and current transfers termed ?
Show answer Hide answer
Answer: A. balance of payments on current account
The current account tracks imports and exports, net investment income, and current transfers. Goods, services, investment income, and current transfers form the balance of payments on current account. Current account led...
Q5. Dumping occurs because ABC Co's computer demand curve is _______ due to the availability of ________ from foreign competitors?
Show answer Hide answer
Answer: A. more elastic in Japan, more substitutes are available from other nations
Dumping occurs when a firm faces a more elastic demand curve in a foreign market due to numerous substitute products available from competitors. High elasticity means consumers are very responsive to price changes, forci...
Q6. How does the real effective exchange rate for the U.S. dollar behave ?
Show answer Hide answer
Answer: C. is the weighted average of the dollar exchange rate relative to the currencies of important U.S trading partners adjusted for inflation?
The real effective exchange rate adjusts for inflation differences across trading partners. It calculates a weighted average of currency values relative to important trade nations. This measure reflects true internationa...