ChelseaP

1. An important problem w/Gold standard wasa. exchange rates tended to fluctuate a great deal, making it difficult for businesses to make long run plansb. country didn't have control of domestic monetary policyc. one country could easily manipulate the system to its advantage and the disadvantage of other countriesd. it was too complicated and restricted business activity2. When Japanese company builds an auto plant in the US, the immediate result of this Japanese investment in US is a ___?__ item in US __?__ accounta. surplus; capitalb. deficit; capitalc. surplus; currentd. deficit; current3. The official reserve account includes all of following EXCEPTa.foreign currenciesb. SDRsc. goldd. silver and other precious metals4. When there is a current account deficit, it is likely thata. country is an exporter of capitalb. capital account has a surplusc. country has a budget surplusd. exports exceeded imports for the country

JurijsFadejevs4047

2) "A" - Japan invests in USA so transfers capital into USA3) I think "D" is right one.4) "A" - deficit on curr. acc. means importing more than exporting and consequently emerging capital outflow.1 - not sure.