Question 1
Which of the following statements is
false?
◦ A country runs a net export deficit if it imports more than it exports.
◦ If the current account is in surplus, the capital account must be in deficit.
◦ The overall sum of all the entries in the balance of payments must be zero.
◦ A country runs a current account surplus if it sells more of its assets abroad than it buys abroad.
Question 2
Which of the following statements is
true?
◦ A decreases in imports causes a balance of payments surplus.
◦ A decrease in exports causes a balance of payments deficit.
◦ An increase in exports causes a balance of payments surplus.
◦ None of these