Suppose that during a recent year, a nation has the transactions related to its balance of p shown in the accompanying table nce of payments Calculate the following for this nation a. Merchandise account balance b. Service account balance c. Balance of merchandise and services d. Current plus capital account balance e Financial account balance without official reserves 1. Balance of payments without official reserves g. The nation's official foreign reserves during this year Merchandise exports Merchandise imports Service exports Service imports Net capital account Net primary income Not secondary income Net direct foreign investment Net Canadian portfolio investment Net other Canadian investment Official reserves 700 740 260 300 1 30 -10 40 10

Suppose that during a recent year, a nation has the transactions related to its balance of p shown in the accompanying table nce of payments Calculate the following for this nation a. Merchandise account balance b. Service account balance c. Balance of merchandise and services d. Current plus capital account balance e Financial account balance without official reserves 1. Balance of payments without official reserves g. The nation's official foreign reserves during this year Merchandise exports Merchandise imports Service exports Service imports Net capital account Net primary income Not secondary income Net direct foreign investment Net Canadian portfolio investment Net other Canadian investment Official reserves 700 740 260 300 1 30 -10 40 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A6 describe the changes of current, capital, and financial account balances. Is the deficit of current account financed by the surplus of capital and financial accounts for that country? Or is an opposite pattern found in a specific time period? Do you observe the inverse relationship between current and capital/financial account balances for these countries?
Why and how net exports and net capital flow are related to each other? If Saudi Arabia experience trade deficit does it necessarily create trouble for a county’s economic growth? Using Purchasing-Power Parity Theory, how nominal exchange rates of a country are determined in relation to other countries?
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
Economics Consider two economies, one called the domestic country and the other the foreign country. Given the transactions listed in (a) through (i), construct the balance of payments for domestic country. If necessary, include a statistical discrepancy. (Hint: Think about the cash flow.) a. The domestic country purchased $120 in oil from the foreign country. b. The domestic sells $35 of ski slopes to foreign country.c. Foreign consumers purchased $50 of wine from the domestic wineries. d. Domestic investors were paid $25 in dividends from holdings of foreign equities. Hint: this is (investment) income received by domestic country. e. Foreign investors were paid $20 in dividends from their holdings of domestic equities. f. Domestic residents gave $15 to foreign charities.g. Domestic businesses borrowed $60 from foreign banks.h. Foreign investors purchased $15 of domestic government bonds. i. Domestic investors purchased $50 of foreign government bonds. Pls solve
image attached
In 2020, the economy of Macroland exported $400 billion of goods and $300 billion of services while it imported $500 billion of goods and $350 billion of services. Furthermore, the rest of the world purchased $250 billion of Macroland's assets. (a) Compute Macroland's balance of payment on the current account and the capital account in 2020. (b) What was the value of Macroland's purchases of assets from the rest of the world in 2020?
Using the table below, Exchange Rates US dollar (S) / per currency Country (currency) France (Euro) Indonesia (Rupiah) Uruguay (Peso) 0.25 0.8 2.5 A dryer produced in the U.S. costs $500. determine the dryer's cost in terms of each country's currency? 3. France 4. Indonesia 5. Uruguay ROULATE
The table gives some information about Nordland's international transactions in 2016. Calculate the current account balance, the capital and financial account balance, and the official settlements account balance. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. GEXES The current account balance is -111 billion dollars. The capital and financial account balance is The official settlements account balance is bilion dollars. 460 billion dollars. Item Imports of goods and services Foreign investment in Nordland Exports of goods and services Nordland's investment abroad Net interest income Net transfers Statistical discrepancy Billions of dollars 1,400 1,100 1,350 600 9 -70 -40
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.
7. Differentiate between the following terms: c) Purchasing power parity and interest rate parity. d) Current account and capital account.