True or False 1. Due to improving political situation in Turkey, foreigners begin investing more on...

True or False

1. Due to improving political situation in Turkey, foreigners begin investing more on Turkish stocks and assets. This trend will decrease the financial account balance (less positive if positive or more negative if negative initially).

2. Foreign purchase of US denominated assets is better than US purchase of foreign currency denominated assets if the country is in financial account deficit.

3. Credit item in BoP is measured with negative sign.

Expert Solution

Question 1

The answer is: False

Due to improving political situation in Turkey, if the foreigners begin investing more in Turkish stocks and assets. Then this trend will increase the financial account balance. Because it is capital inflow.

The capital from foreigners, whether it is in the form of bonds, shares or any financial assets would increase the financial account balance in the balance of payments of the domestic country. So, if the foreigners begin investing more in Turkish stocks and assets. Then this trend will increase the financial account balance

Question 2
The answer is: True
Foreign purchase of US denominated assets is good compared to US purchase of foreign currency denominated assets if the country is in financial account deficit.

Foreign purchase of US denominated assets would decrease the financial account deficit and would help the country to come out of deficit since it is capital inflow. Whereas, US purchase of foreign currency denominated assets would increase the deficit in the financial account since it is capital outflow. So, foreign purchase of US denominated assets is better than US purchase of foreign currency denominated assets if the country is in financial account deficit.

Question 3
The answer is: False
Credit item in BoP is measured with a positive sign.
Credit item involves inflow of funds into the country. So, it is measured with positive(+) sign. Whereas debit item involves an outflow of funds from the country. So, it is measured with negative (-) sign.

Rahul Sunny answered 1 year ago

1-Due to improving political situation in Turkey, foreigners begin investing more on Turkish stocks and assets....

1-Due to improving political situation in Turkey, foreigners begin investing more on Turkish stocks and assets. This trend will decrease the financial account balance (less positive if positive or more negative if negative initially). True False 2-Foreign purchase of US denominated assets is better than US purchase of foreign currency denominated assets if the country is in financial account deficit. True False 3-Credit item in BoP is measured with negative sign. True False

True or false: 1) If a nation is selling more goods and services to foreigners than...

True or false: 1) If a nation is selling more goods and services to foreigners than it is buying from them, then on net it must be selling assets abroad. 2) It is possible for a country to have domestic investment that exceeds national saving. 3) If a country’s trade surplus falls, its net capital outflow rises. 4) If the exchange rate is 80 yen per dollar, then a hotel room in Tokyo that costs 25,000 yen costs $200. 5)...

Improving productivity will� result in an increase in the aggregate supply curve. TRUE or FALSE The...

Improving productivity will� result in an increase in the aggregate supply curve. TRUE or FALSE The United States Public Debt is currently over 24 trillion dollars. True False The majority of the Public Debt is owed to Americans and American interests. True False What is The GDP level where GDP is equal to total spend. (Equilibrium GDP, NonEquilibrium GDP, Real GDP, or Nominal GDP)

PART 6: True or false and multiple-choice questions Question 16: True or false, firms in situation...

PART 6: True or false and multiple-choice questions Question 16: True or false, firms in situation of monopolistic competition have deadweight losses associated with monopoly because of barriers to entry. Question 17: Which of the two demands functions below is most elastic A) Qa=100-2p B) Qb=120-p Question 18: If a buyer values an object for $4 and a seller’s cost is $1, which of the statements below is false! If a transaction takes place, total surplus will be equal to...

True/False 1) A wire carrying current due east in a magnetic field is deflected due north....

True/False 1) A wire carrying current due east in a magnetic field is deflected due north. The magnetic field must have a component that points into the ground 2) The self-inductance of a solenoid depends on the geometry of the solenoid and is independent of the current flowing through it 3) A horizontal bar that is oriented east to west is pulled vertically upward through a magnetic field that points due north. The east end of the bar is at...

True or False? Explain. Use diagrams and/or examples when necessary. 1 If people in Cuba begin...

True or False? Explain. Use diagrams and/or examples when necessary. 1 If people in Cuba begin to prefer foreign goods, Cuba’s Terms of Trade will fall. 2 According to the Stolper-Samuelson Theorem, an increase in the price of a good leads to an increase in the production of that good and a decrease in the production of the other good. 3 The Leontief Paradox states that in 1947, US exported a lower number of labor- intensive goods and imported a...

True or False questions 1. It is fortunate that more people are not infected with cellular...

True or False questions 1. It is fortunate that more people are not infected with cellular diseases because a cell cycle has only one checkpoint to stop abnormal cells from dividing. 2. Cancer cells divide more frequently than non-cancerous cells which explains why radiation and chemotherapy are effective cancer cell treatments. 3. Sister chromatids separate during meiosis II which results in cells with half the number of chromosomes as the parent cell. 4. It is fortunate that more people are...

True or False and why 1.The variability due to error (SSE) is always smaller than the...

True or False and why 1.The variability due to error (SSE) is always smaller than the variation explained by the model (SSModel). 2.If the size of the typical error increases, then the prediction interval for a new observation becomes narrower. 3. For the same value of the predictor, the 95% prediction interval for a new observation is always wider than the 95% confidence interval for the mean response. 4.If the correlation between X1 and Y is greater (in magnitude) than...

True and False True/False Write True or False before the statement. 1. Gypsum is the brand...

True and False True/False Write True or False before the statement. 1. Gypsum is the brand name for sheetrock. 2. Coreboards and liner boards come in 2-foot widths. 3. Adhesives are not used for bonding gypsum board directly to supports. 4. Supplemental fasteners should be used with contact adhesives. 5. Gypsum panels are applied first to ceilings and then to the walls. 6. The floating angle method of drywall application omits fasteners in the corner intersection of the ceilings and...

True/False for the following: 1) It is standard practice for a term sheet to require more...

True/False for the following: 1) It is standard practice for a term sheet to require more than half the board seats to go to the seed investors. 2) The term sheet between an investors and founder is a legally binding agreement. 3) If a 1X liquidation preference is included in the term sheet the Venture Capitalist will never be able to realize a gain on its investment but will be protected from a loss. 4) An option pool is used...

Question