CHOOSE THE ANSWER FROM HIGHLIGHTED BELOW: 1a.If a Swedish resident buys shares i
ID: 2464220 • Letter: C
Question
CHOOSE THE ANSWER FROM HIGHLIGHTED BELOW:
1a.If a Swedish resident buys shares in a British company paying in British pounds previously collected by the Swedish resident, then according to IMF definitions it should show up in Sweden's
current account as a debit and in Sweden's financial account as a credit.
capital account as a credit and in Sweden's financial account as a debit.
financial account as a debit and in Sweden's financial account as a credit.
current account as a credit and in Sweden's financial account as a debit.
capital account as a debit and in Sweden's financial account as a credit.
1b .According to IMF definitions and variable definitions provided in lecture, if a Swedish firm sells patent rights to a US firm, it should show up in Sweden's balance of payment accounts as
an decrease in FAND.
an increase in KA.
a decrease in CA.
a decrease in KA.
an increase in CA.
1c.
According to IMF definitions and variable definitions provided in lecture, the purchase of foreign currency by a country's central bank (paying with the currency of its own country) should show up in that country's balance of payments accounts as
an increase in BPI.
an increase in OSB.
a decrease in OSB.
an increase in CA.
an increase in KA
Explanation / Answer
1a.If a Swedish resident buys shares in a British company paying in British pounds previously collected by the Swedish resident, then according to IMF definitions it should show up in Sweden's capital account as a debit and in Sweden's financial account as a credit.
1b .According to IMF definitions and variable definitions provided in lecture, if a Swedish firm sells patent rights to a US firm, it should show up in Sweden's balance of payment accounts as an increase in CA.
1c. According to IMF definitions and variable definitions provided in lecture, the purchase of foreign currency by a country's central bank (paying with the currency of its own country) should show up in that country's balance of payments accounts as an increase in CA.