Country A is an open economy, where the economic agents make both current account and financial account transactions with the rest of the world. The value of foreign holdings in Country A's assets increases by 11% every year, the value Country A's holdings of foreign assets increases by 5% every year, and the value of Country A's net capital transfers increase by 4% every year. Let the currency of Country A be denoted by CA, The table shows some of the information about the Balance of Payments account for Country A, for the year 2012. Transactions (1) Exports (2) Imports Value (in CA) 200 400 45 (4) Income payments made to foreign residents 400 (3) Net capital transfers (5) Income payments received by domestic residents?? (6) Foreign holdings of Country A's assets (7) Country A's holdings of foreign assets 300 400 What would be the minimum amount of income payments received needed by Country A if it wants a current account surplus of CA 100? Income payments received by domestic residents-C4 655 x (Round to the nearest dollar.) What is the financial account balance of this country in 2014? Financial account balance-C4 -22.7. (Round your answer to two decimal places.)

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Country A is an open economy, where the economic agents make both current account and financial account transactions with the rest of the world. The value of foreign holdings in Country A's assets increases by 11% every year, the value o
Country A's holdings of foreign assets increases by 5% every year, and the value of Country A's net capital transfers increase by 4% every year. Let the currency of Country A be denoted by CA,
The table shows some of the information about the Balance of Payments account for Country A, for the year 2012.
Transactions
Value (in
CA)
(1) Exports
(2) Imports
(3) Net capital transfers
200
400
45
(4) Income payments made to foreign residents
400
(5) Income payments received by domestic residents??
(6) Foreign holdings of Country A's assets
300
400
(7) Country A's holdings of foreign assets
What would be the minimum amount of income payments received needed by Country A if it wants a current account surplus of CA 100?
Income payments received by domestic residents=CA 655 × (Round to the nearest dollar.)
What is the financial account balance of this country in 2014?
Financial account balance=CA -22.7✓
(Round your answer to two decimal places.)
Transcribed Image Text:Country A is an open economy, where the economic agents make both current account and financial account transactions with the rest of the world. The value of foreign holdings in Country A's assets increases by 11% every year, the value o Country A's holdings of foreign assets increases by 5% every year, and the value of Country A's net capital transfers increase by 4% every year. Let the currency of Country A be denoted by CA, The table shows some of the information about the Balance of Payments account for Country A, for the year 2012. Transactions Value (in CA) (1) Exports (2) Imports (3) Net capital transfers 200 400 45 (4) Income payments made to foreign residents 400 (5) Income payments received by domestic residents?? (6) Foreign holdings of Country A's assets 300 400 (7) Country A's holdings of foreign assets What would be the minimum amount of income payments received needed by Country A if it wants a current account surplus of CA 100? Income payments received by domestic residents=CA 655 × (Round to the nearest dollar.) What is the financial account balance of this country in 2014? Financial account balance=CA -22.7✓ (Round your answer to two decimal places.)
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