1.A nation's net creditor position indicates that it:

A) has collected more in taxes than its government has spent.

B) owes money to other foreign and international government agencies.

C) has positive net external wealth

D) has negative net external wealth.

2.Which of the following credit ratings is MOST favorable?

A) BBB+

B) BBB-

C) C

D) CD

3.The main lessons of the study of international macroeconomics are that:

A) there is a consensus regarding the best policies to follow.

B) poor countries will become rich if they just adopt the institutions of the rich countries.

C) financial openness will quickly lead to economic growth.

D) the best policies to follow depend on the institutional structure of a country and the specific situation.

4.A deficit in the financial account means the nation has:

A) imported more assets than it exported.

B) exported more assets than it imported.

C) saved more than it invested.

D) produced more than it consumed.

5.A transaction that results in a decrease (-) in its account is known as a(n):

A) BOP debit.

B) capital flow.

C) BOP credit.

D) asset accretion.

6.During the period in which a nation has a current account surplus, it is a net ____, and whenever it has a current account deficit, it is a net ____.

A) supplier; user

B) lender; borrower

C) borrower; lender

D) debtor; creditor