Question 2What are the two main accounts of the balance of payment account?b. Use the information given below and answer the questions (i-iv)a.ItemsKina (Million)Visible ExportsRepayment of LoanExport of Raw MaterialShipping EarningsTourists Earnings20025502025Interest Paid Overseas20Visible ImportsImport of Raw MaterialInvisible Imports15075100i.Calculate the value of total visible exports.Calculate the value of invisible balance.Calculate the balance on current account.Calculate the overall balance of payment.ii.iii.iv.

When an open economy make international transactions, it will record all the transactions in the…

Answered: Question 2 What are the two main…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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II Read the material below and answer the relative questions. 1.You are provided with the following information about a country's international transactions during a given year (in millions): Service exports Service imports Merchandise exports Merchandise imports Income flows, net Gifts to foreigners Increase in the country's holding of foreign assets, net (excluding official reserves assets) Increase in foreign holdings of the country's assets, net (excluding official reserves assets) Statistical discrepancy, net credit $346 $354 $480 $348 $153 $142 $352 $252 $154 Calculate the official settlements balance and the current account balance. Is the country increasing or decreasing its net holdings of official reserve assets? By how much?
20- Balance of payments (BOP) is measuring all international economic transactions between the residents of a country and foreign residents. Please expand the statement by discussing what economic activities are measured by BOP? And why it always be balanced?
Assume follow transactions are the receipts and payments for Malaysia in 2022.
2
A. Canada produces natural resources (coal, natural gas, and others), the demand for which has increased rapidly as China and other emerging economies expand. i. Explain how growth in the demand for Canada's natural resources would affect the demand for Canadian dollars in the foreign exchange market. Explain how the supply of Canadian dollars would change. ii. iii. Explain how the value of the Canadian dollar would change. iv. Illustrate your answer with a graphical analysis. 1
Item Exports of goods and services Imports of goods and services Net interest income Net transfers Urland's investment abroad Foreign investment in Urland 30. A) B) Billions of dollars 635 . -555 -18 22 -467 321 02.0 The above table shows some of the balance of payments accounts for Urland. What is Urland's balance in the official settlements account? $405 billion $62 billion $99 billion $37 billion nożli
2
please explain: (a)The function offorward foreign exchange business (b)the main content ofInternational Currency System
Which of the following will enter as a credit in the U.S. balance-of-payments financial account? (a) The sale of an American baseball team to a Japanese industrialist (b) The sale of Japanese electronics to an American (c) The purchase of a Japanese automobile by a U.S. consumer (d) The purchase of a Japanese electronics plant by an American industrialist
Suppose a country's net exports are $400 billion, income receipts on investments are $780 billion, and income payments on investments are $1,200 billion. Suppose unilateral transfers are $250 billion. If all international transactions are recorded accurately in the balance of payments, what is the value of the financial account? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a -$20 billion b d -$270 billion $270 billion Need information on the flows of funds for real and financial investments to answer. Your answer
2. The Table gives some information about Canada's international transactions in 2010. Item Billions of dollars. Imports of goods and services Net foreign investment in Canada Exports of goods and services. Net interest income. Net transfers Statistical discrepancy 508 54 476 16 (-3) 1 (a) Calculate the balance on the three balance of payments accounts. (b) Was Canada a net borrower or a net lender in 2010? Explain your answer.
5.3 Impact of Inflation on Zimbabwe’s Balance of Payments

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