II. Multiple-choice Question ( There are at least two correct choices for each question) 1. What are the methods of analyzing the BOP statement? ( ) A.staticanalysismethodC.EquilibriumanalysismethodB.dynamicanalysismethodD.methodofcomparativeanalysis 2. What sub-items are included in the current account of the BOP statement? ( ) 3. What are the following correct statements about the preparation of the BOP statement? ( ) A.the compilation principle is double entry bookkeeping principle B.the debit record their own imports of real resources and their own reductions in assets C.adopt the pricing principle based on market price D.time of bookkeeping is based on ownership transfer 5. What are the roles of international reserves? ( ) A.adjust international balance of payments imbalances B.strengthen domestic credit C.guarantee of external debt and solvency D. intervene in the foreign exchange market to maintain the stability of the domestic exchange rate III.True or False Question (Mark if the description is correct and x if the description is wrong) 1. In the narrow sense of balance of payments, foreign exchange does not belong to the category of balance of payments. ( ) 2. The broad balance of payments refers to the systematic record of all economic transactions between residents and non-residents of a country in a given period of time. ( ) 3. The BOP statement is prepared on a payment basis rather than a transaction basis. ( ) 4. The BOP statement reflects all economic transactions. ( ) 5. Any gold held in commercial reserves by entities and authorities for trading purposes is monetary gold. ( )