Required1) Interpret the figure for the overall balance. Explain the impact of this figure on the country's official reserves.2) Based pn you answer (d), explain three (3) measures to overcome the problem Balance of PaymentsThe table below presents the balance of payments for a country A in 2014. The mainobjective of compiling Country A's balance of payments is to provide information onCountry A's economic performance compared with the rest of the world.The comparison is done in terms of the magnitude and types of transactions in CurrentAccount and also in Capital and Financial Account flows.In particular, the Current Account position summarises the country's transactions ingoods, services, primary income and secondary income, and presents an overall viewof Country A's earnings and spending in terms of foreign exchange for the period underreview.As for the current account balance reflects the net provision of resources to or from therest of the world, the estimates of financial account reflects whether Country A has netclaims on or liabilities to the rest of the world.ItemBalance on Current AccountBalance on Capital and FinancialAccountsErrors and OmissionsOverall BalanceAdapted from Department of StatisticsRM (Million)32,252-23,848-16,581-8,177

Balance pf payment accounts is a double book keeing system that records the transactions of the home…

equired 1) Interpret the figure for the overall balance. Explain the impact of this figure on the country's official reserves. 2) Based pn you answer (d), explain three (3) measures to overcome the problem

equired 1) Interpret the figure for the overall balance. Explain the impact of this figure on the country's official reserves. 2) Based pn you answer (d), explain three (3) measures to overcome the problem

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter29: International Finance

Section: Chapter Questions

Problem 8P

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