Essentials of Economics
4th Edition
ISBN: 9781464186653
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Question
Chapter 20, Problem 11P
To determine
Balance of payment on financial account, Balance of payments on current account, Value of its imports
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Students have asked these similar questions
The table below gives the data about Etruria's balance of payments. (All figures are in billions of dollars.)
Foreign investment in Etruria
82
Secondary (transfers) income received from abroad
13
Primary (investment) income received from abroad
9
Imports of goods and services
148
Exports of goods and services
152
Secondary (transfers) income paid abroad
8
Etruria investment abroad
64
Primary (investment) income paid abroad
25
a. What is the value of the balance of trade?
$
b. What is the balance on the current account? Remember to enter a minus (−) sign to indicate negative values.
c. What is the balance on the capital account?
d. Is there a balance of payments surplus or deficit? How much?
What is the nation’s trade balance on its current account and capital account given the following information? Is the nation experiencing a cash (outflow) in its current account and capital account? Was there a net currency inflow or outflow? Please prepare a table for both current account and capital account.
Imports: $206
Exports: 250
Direct investment abroad: 34
Foreign investments in the country: 16
Foreign purchases of domestic securities: 33
Purchases foreign securities; 87
Net income from foreign investments; 71
Government spending abroad: 33
Balance on current account?
Balance on capital account?
Balance on financial account?
Does Serbia balance of payments show a deficit, a surplus, or are its international
payments accounts in balance?
Chapter 20 Solutions
Essentials of Economics
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