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- 1. Multiple Choice
How is the purchase of imported cars recorded in Australia's BoP?As a goods credit in the current accountAs a goods credit in the income accountAs a goods credit in the capital accountAs a goods debit in the current account - 2. Multiple ChoiceHow is spending by tourists visiting Australia recorded in the BoP?As a service debit in the current accountAs an income credit in the current accountAs a service credit in the current accountAs a service credit in the capital account
- 3. Multiple ChoiceHow is the payment of interest on foreign loans recorded in the BoP?As an income debit in the current accountAs a service debit in the current accountAs a foreign investment debit in the financial account
- 4. Multiple ChoiceExpenditure by Toyota Australia, on freight costs for imported cars, is recorded in the balance of payments asan income debit in the current accounta service debit in the current accounta service deficit in the current accountan income deficit in the current account
- 5. Multiple ChoiceDevelopment aid is different from emergency relief in thatit is responsive to natural disastersits aim is to build the productive capacity of the recipientit is impossible to plan in advance.
- 6. Multiple ChoiceA rise in import spending would, ceteris paribus,increase an existing Balance on Goods and Services deficit.reduce an existing current account deficit
- 7. Multiple ChoiceA payment for which nothing of economic value is received in return is calleda transfer paymenta waste of moneya Dead Weight Loss
- 8. Multiple ChoiceThe Australian govt spent $19m on the construction of the Thai-Laos Friendship bridge across the Mekong River. This payment was recorded in the Balance of Payments asa debit in secondary incomea debit in the Financial accounta capital transfer debit
- 9. Multiple ChoiceThe structural component of Australia's Current Account Deficit (CAD) isthe net income deficit.the trade balance.the fact that we spend too much on imports.
- 10. Multiple ChoiceAustralia's trade balance isalways a deficitalways a surplusthe cyclical component of the CADa national disgrace
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