Assume the following to be a portion of the simplified balance of payments statement for a hypothetical country. The values are given in billions of dollars. Exports Imports $1,000 - $750 Capital Outflows - $250 $150 Capital Inflows If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should be equal to $ billion.

The nation of Narnia had a current account deficitof $423 million and a nonreservefinancial account surplus of $360 million in year3695.   a.What was the balance of payments of Pecunia in thatyear? What happenedto the country’s net foreign assets?   b.If there is a sudden increase in sales of goods andservices to foreigners,what effect do you expect in the Balance of Paymentaccount?   c.How would the increase in domestic interest rate inyear 3695 affect thebalance of payment?

Why would a nation “dollarize”—that is, adoptanother country’s currency instead of having its own?

Please answer intuitively and completely please

The demand for Australian dollars in the foreign exchange market equals 14000 – 3000e and thesupply of Australian dollars in the foreign exchange market equals 2000 + 2000e, where e is thenominal exchange rate expressed in euros per Australian dollar. If the Australian dollar is fixed at 2euros per Australian dollar, then to maintain this fixed rate, what is the required change in theReserve Bank of Australia’s holdings of euros? 1increase by 4000 euros 2decrease by 2000 euros 3decrease by 4000 euros 4increase by 2000 euros

What would make a country decide to changefrom a common currency, like the euro, back to its own currency?

How should appreciation of a firm’s home country currency generally affect its cash inflows? How should depreciation of a firm’s home country currency generally affect its cash outflows?

Which of the following scenarios is most likely to lead to a country experiencing a contractionary devaluation? a. Havingassetsandliabilitiesbothpredominantly denominated in the domestic currency b. Havingassetspredominantlydenominatedinthe domestic currency and liabilities in a foreign currency c. Having assets predominantly denominated in a foreign currency and liabilities in the domestic currency d. Havingassetsandliabilitiesbothpredominantly denominated in a foreign currency.

Assurme the following to be a portion of the sirmplified balance of payments statement for a hypothetical country. The values are given in billions of dollars. Exports s00 Imports Capital Outflows Capital Inflows - S600 - S200 $120 If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should I equal to S billion.

An American buys a Japanese car, paying by writing a check on an account with a bank in New York. How would this be accounted for in the balance of payments? Lütfen birini seçin: O A. financial account as a U.S. asset import and a capital account, US transfer payment O B. financial account as a U.S. asset export and a financial account, a US asset import O C.a current account as a U.S. good import and a financial account, a U.S. asset import O D. a current account as a US good export and a financial account, a U.S. asset export O E. a current account as a U.S. good import and a financial account, a U.S. asset export