1. (TCO 9) Remittances of Mexican workers in the U.S. to their families in Mexico are included
in the U.S. balance of payments as a debit in the section on(Points : 4) trade in services.
net international transfers.
financial accounts.
capital accounts.Question 2.2. (TCO 9) A trade deficit means a net (Points : 4) inflow
of payments for goods and services.
outflow of goods and services.
inflow of goods and services.
excess of exports over imports.Question 3.3. (TCO 9) If a Japanese importer could buy
$1,000 U.S. for 122,000 yen, the rate of exchange for $1 would be (Points : 4) 8.19 yen.
122 yen.
820 yen.
1,220 yen.Question 4.4. (TCO 9) When the exchange rate between pounds and dollars
moves from $2 = 1 pound to $1 = 1 pound, we say that the dollar has (Points : 4)
depreciated.
appreciated.
inflated.
deflated.Question 5.5. (TCO 9) The monetary system for conducting international trade is
usually described as a system of (Points : 4) fixed exchange rates.
freely floating exchange rates.
a managed gold standard.
managed floating exchange rates.1. (TCO 9) Remittances of Mexican workers in the U.S.
to their families in Mexico are included in the U.S. balance of payments as a debit in the section
on(Points : 4) trade in services.
net international transfers.
financial accounts.
capital accounts.
Solution
1. Remittances of Mexican workers in the U.S. to their families in Mexico are included in the
U.S. balance of payments as a debit in the section on \" net international transfers\". Because
such remittances are unilateral transfers and shall be deducted from net international transfers in
current account.
2. A trade deficit means a net \"inflow of goods and services\". It is a condition where imports of
a country exceeds export of that country hence representing net inflow of goods and service.
3. If a Japanese importer could buy $1,000 U.S. for 122,000 yen, the rate of exchange for $1
would be \"122 yen\". Calculated as: $1 = 122,000 yen / $1,000 = 122 yen.
4. When the exchange rate between pounds and dollars moves from $2 = 1 pound to $1 = 1
pound, we say that the dollar has \"appreciated\". Because now with the effect of change a person
would have to spend more amount of pound than before to get same amount of dollar.
5. The monetary system for conducting international trade is usually described as a system of \"
managed floating exchange rates\". It is the current system in which currencies exchange
flactuautes day to day..
1. (TCO E) Which of the following is not a passive activityOwning.pdf
1. 1. (TCO E) Which of the following is not a passive activity?
Owning a business and not materially participating
Having rental condos
Owning a limited partnership interest in a real estate limited partnership
Owning a working interest in oil and gas properties
Solution
Owning a working interest in oil and gas properties since working interest is excluded from
passive activity
