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What is meant by the balance-of-payments?

What economic transactions give rise to the receipt of dollars from foreigners? What transactions give rise to payments to foreigners?

Why does the balance-of-payments statement "balance"?

From a functional viewpoint, a nation's balance-ofpayments can be grouped into several categories. What are these categories?

What financial assets are categorized as official reserve assets for the United States?

What is the meaning of a surplus (deficit) on the (a) merchandise trade balance, (b) goods and services balance, and (c) current account balance?

Why has the goods and services balance sometimes shown a surplus while the merchandise trade balance shows a deficit?

What does the balance of international indebtedness measure? How does this statement differ from the balance-of-payments?

Indicate whether each of the following items represents a debit or a credit on the U.S. balance-of-payments: a. A U.S. importer purchases a shipload of French wine. b. A Japanese automobile firm builds an assembly plant in Kentucky. c. A British manufacturer exports machinery to Taiwan on a U.S. vessel. d. A U.S. college student spends a year studying in Switzerland. e. American charities donate food to people in drought-plagued Africa. f. Japanese investors collect interest income on their holdings of U.S. government securities. g. A German resident sends money to her relatives in the United States. h. Lloyds of London sells an insurance policy to a U.S. business firm. i. A Swiss resident receives dividends on her IBM stock.