10. When a U.S. resident (1) purchases foreign treasury bills and pays by (2) drawing down his bank balances abroad, the U.S.:

A. debits short-term capital and credits official reserves *B. debits capital for (1) and credits capital for (2) C. debits official reserves and credits capital

D. credits short-term capital and debits official reserves

11. From the U.S. point of view, drawing on (reducing) foreign bank balances in a New York bank represents a: A. capital inflow *B. capital outflow

C. outflow of official reserves D. debit in the current account

12. Which is not an official reserve asset of the U.S.? A. U.S. holdings of Special Drawing Rights

B. The U.S. reserve position in the International Monetary Fund *C. Foreign official holdings of U.S. dollars

D. Official holdings of foreign currencies by U.S. monetary authorities

13. The capital account of the U.S. includes:

A. the change in U.S. assets abroad and foreign assets in the U.S.

*B. the change in U.S. assets abroad and foreign assets in the U.S., other than official reserve assets C. all financial assets

D. all but current account transactions

14. Accommodating items are: A. transactions in official reserve assets B. the items below the line

C. needed to balance international transactions *D. all of the above

15. Which of the following is false?

*A. a net debit balance in the current and capital accounts measures the surplus in the nation's balance of payments

B. a balance of payments deficit must be settled by a net credit in the official reserve account

C. a deficit in the balance of payments can be measured by the excess of credits over debits in the official reserve account

D. a net debit balance in the official reserve account refers to a surplus