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The secondary income balance refers to:

income earned abroad by a nation's own workers minus income paid to foreign non-resident workers.

gifts, charitable contributions, and aid to foreign residents minus the same types of transfers to residents of the home nation.

government subsidies to home corporations minus the same government subsidies to international corporations.

payments to foreign factors of production minus payments received to factors of production residents of the home nation.

If a country runs a current account deficit, it is:

lending, in net terms, from other countries

accumulating a net external credit.

borrowing, in net terms, from other countries.

neither borrowing nor lending internationally.

The capital account:

is a very important account of the balance of payments.

registers all transactions of non-produced and non-financial assets.

registers all transactions of goods and services and payments of income.

registers all transactions of financials assets.

Summaries of international flows of goods and assets are recorded in a nation's:

balance on international indebtedness.

balance of payments accounts.

balances with the IMF.

national income and product accounts.

The tFt+1 futures market exchange rate is used for:

Determine if there is a difference between two assets in two countries with

different currencies

Determine if there is a difference between two assets in two countries

with the same currency (for example, two Eurozone countries)

calculate the value of S at time t+1

calculate the value of S at time t

Credit rating agencies assess:

The absolute advantage

The risk associated with the perfect substitutability of country assets

with different currencies

The risk associated with imperfect substitutability of country assets

Purchasing power parity

The risk premium explains why:

the return of assets differ

across countries

the vehicle currencies no longer exist since the 2008 financial crisis

the prices of goods converge across countries

the prices of goods and services converge across countries

According to uncovered interest parity, when interest rates are equal, the exchange rate of the country's home currency is expected to:

remain constant.

fall.

rise.

Not enough information is provided to answer the question.

If a euro invested in a German

asset yields (1+i), with i the domestic interest rate, if S and the euro/dollar

exchange rate and if the rate in the United States is i*:

German assets are more

attractive if the euro depreciates

None of the other options is

true

The German asset is more

attractive if (1+i) > (1+i*)

U.S. assets are more

attractive if (1+i) > (1+i*)