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    CA Question 1

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    Shourjyo biswas
    This document provides questions for a test on balance of payments and international finance concepts. It asks the test taker to: 1) Explain the balance of payments and its components. 2) Analyze how a Mexican purchasing a gemstone in Brazil with cash or deposit would appear in each country's balance of payments accounts. 3) Define official foreign exchange intervention and why countries do it. 4) Explain when a country has a deficit in its balance of payments.

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    CA Question 1

    Uploaded by

    Shourjyo biswas
    9 views1 page
    This document provides questions for a test on balance of payments and international finance concepts. It asks the test taker to: 1) Explain the balance of payments and its components. 2) Analyze how a Mexican purchasing a gemstone in Brazil with cash or deposit would appear in each country's balance of payments accounts. 3) Define official foreign exchange intervention and why countries do it. 4) Explain when a country has a deficit in its balance of payments.

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    CA question 1.txt

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    This document provides questions for a test on balance of payments and international finance concepts. It asks the test taker to: 1) Explain the balance of payments and its components. 2) Analyze how a Mexican purchasing a gemstone in Brazil with cash or deposit would appear in each country's balance of payments accounts. 3) Define official foreign exchange intervention and why countries do it. 4) Explain when a country has a deficit in its balance of payments.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as txt, pdf, or txt
    9 views1 page

    CA Question 1

    Uploaded by

    Shourjyo biswas
    This document provides questions for a test on balance of payments and international finance concepts. It asks the test taker to: 1) Explain the balance of payments and its components. 2) Analyze how a Mexican purchasing a gemstone in Brazil with cash or deposit would appear in each country's balance of payments accounts. 3) Define official foreign exchange intervention and why countries do it. 4) Explain when a country has a deficit in its balance of payments.

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    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
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    Download as txt, pdf, or txt
    of 1

    You will be asked the following questions (read the slides and Krugman -Obstfeld):

    1. Explain what is Balance of Payments and its components. 2. A Mexican travels to


    Brazil to buy a gemstone which costs 3,000 Real (Brazilian currency). The Brazilian
    company that sells the gemstone then deposits the 3000 Real in its account in a
    Panama bank. How would these transactions show up in the balance of payments
    accounts of Mexico and Brazil? What if the Mexican pays cash for the gemstone? 3.
    What is official foreign exchange intervention and why is it done? 4. When does a
    country have a deficit in its balance of payments?

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