Balance of Payments: Surpluses True/False

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Quick true/false about balance of payments surpluses.

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Montex

Canada

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Balance of Payments: Surpluses True/FalseOnline version Quick true/false about balance of payments surpluses. by Montex 1 A surplus has no impact on the exchange rate and cannot cause currency appreciation. Yes No 2 A balance of payments surplus implies permanent, unconditional economic growth. Yes No 3 A balance of payments surplus can lead to an increase in foreign exchange reserves. Yes No 4 A surplus can be associated with falling unemployment as domestic demand grows. Yes No 5 A balance of payments surplus can arise when foreigners demand more locally produced goods and services. Yes No 6 A surplus on the balance of payments can be inflationary if demand increases and resources are not idle. Yes No 7 If imports fall, the balance of payments surplus will always vanish immediately. Yes No 8 Policies to reduce a balance of payments surplus include increasing tariffs across the board. Yes No 9 A balance of payments surplus always improves a country’s long-term growth with no downsides. Yes No 10 Revaluation of the currency can make imports cheaper and thus reduce the surplus. Yes No

Balance of Payments: Surpluses True/FalseOnline version

Quick true/false about balance of payments surpluses.

by Montex

A surplus has no impact on the exchange rate and cannot cause currency appreciation.

Yes

A balance of payments surplus implies permanent, unconditional economic growth.

Yes

A balance of payments surplus can lead to an increase in foreign exchange reserves.

Yes

A surplus can be associated with falling unemployment as domestic demand grows.

Yes

A balance of payments surplus can arise when foreigners demand more locally produced goods and services.

Yes

A surplus on the balance of payments can be inflationary if demand increases and resources are not idle.

Yes

If imports fall, the balance of payments surplus will always vanish immediately.

Yes

Policies to reduce a balance of payments surplus include increasing tariffs across the board.

Yes

A balance of payments surplus always improves a country’s long-term growth with no downsides.

Yes

Revaluation of the currency can make imports cheaper and thus reduce the surplus.

Yes

You can integrate the game into an LMS compatible with LTI 1.1 or LTI 1.3 such as Canvas, Moodle, or Blackboard. This way, the scores will be automatically saved into the platform’s gradebook.

Balance of Payments: Surpluses True/False

Yes or No

About this activity

Created by

Download the paper version to play

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Yes or No

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Yes or No

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Yes or No

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Balance of Payments: Surpluses True/FalseOnline version

by Montex

A surplus has no impact on the exchange rate and cannot cause currency appreciation.

A balance of payments surplus implies permanent, unconditional economic growth.

A balance of payments surplus can lead to an increase in foreign exchange reserves.

A surplus can be associated with falling unemployment as domestic demand grows.

A balance of payments surplus can arise when foreigners demand more locally produced goods and services.

A surplus on the balance of payments can be inflationary if demand increases and resources are not idle.

If imports fall, the balance of payments surplus will always vanish immediately.

Policies to reduce a balance of payments surplus include increasing tariffs across the board.

A balance of payments surplus always improves a country’s long-term growth with no downsides.

Revaluation of the currency can make imports cheaper and thus reduce the surplus.

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