The Current AccountExports of g&s minus Imports of g&s$3,000$2,000$50,000$2,000$2,000$80,000Net income on factors held abroadNet transfers from foreigners to U.S.The Financial Accountforeigners' purchases of domestic$21,000$30,000assets minus domestic residents'purchases of foreign assetsA. +29,000 B. +80,000What additional capital inflows are needed inC. +51,000order for the Balance of Payments accounts tobalance?

Formula: Balance of payment method: Current Account= Capital Account+ Financial Account

Answered: What additional capital inflows are…

What additional capital inflows are needed in A. +29,000 B. +80,000 order for the Balance of Payments accounts to C. +51,000 balance?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

The Current Account
Exports of g&s minus Imports of g&s
$3,000
$2,000
$50,000
$2,000
$2,000
$80,000
Net income on factors held abroad
Net transfers from foreigners to U.S.
The Financial Account
foreigners' purchases of domestic
$21,000
$30,000
assets minus domestic residents'
purchases of foreign assets
A. +29,000 B. +80,000
What additional capital inflows are needed in
C. +51,000
order for the Balance of Payments accounts to
balance?

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