The financial system:
A. gathers information about the economy in an effort to inform the public.
B. brings together savers and borrowers in a set of interconnected markets where people trade a variety of financial products.
C. connects the government to those truly in need of public services.
D. is used to help individuals keep track of the general price level.
Answer: B
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Which of the following would be recorded as a U.S. merchandise export? a. An American tourist spends 10,000 francs on vacation in the south of France. b. A machine shop in Ohio purchases a grinder made in Italy. c. An American receives a $50 dividend check on stock she owns in a business in Germany
d. The U.S. government subsidizes American farmers for planting corn for export. e. France purchases a new jet fighter aircraft from the Boeing Company in the United States.
Taken as a whole the balance of payments:
a. Is usually positive when a nation is healthy and negative when it is weak. b. Is usually negative when the nation is healthy and positive when it is weak. c. Must equal zero. d. Must equal GDP minus personal consumption expenditures. e. Can be positive or negative. It does not depend on the health of the country.