(a) Capital account balance Explanation: Current account-It is a part of balance of payments that records exchange of goods, services and unilateral transfers between domestic country and rest of the world. Capital account-It is a part of balance of payments that records exchange of goods, services, unilateral transfers and purchase and sale of financial assets between domestic country and rest of the world, Answer: Balance on capital account ($ trillions) Capital account Private capital going to abroad -0.1 Foreign private capital coming 0.2 Balance on capital account 0.1 (b) Change in official reserve Explanation: Official reserve is a part of balance of payment which has following components. a) Foreign Currency b) Gold c) Special Drawing Rights d) Reserve position in International Monetary Fund e) Financial assets held by official agency. ($ trillions) Balance on Current account -0.2 Capital account Private capital going to abroad -0.1 Foreign private capital coming 0.2 Balance on capital account 0.1 Balance on current and capital account -0.1 Official Reserve Transaction Account Officials Transactions Balance 0.1 Total(Balance) 0

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Answer 1

Question

Chapter 33, Problem 2P

To determine

(a)

Capital account balance

Explanation:

Current account-It is a part of balance of payments that records exchange of goods, services and unilateral transfers between domestic country and rest of the world.

Capital account-It is a part of balance of payments that records exchange of goods, services, unilateral transfers and purchase and sale of financial assets between domestic country and rest of the world,

Answer:

Balance on capital account ($ trillions)

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1

(b)

Change in official reserve

Explanation:

Official reserve is a part of balance of payment which has following components.

a) Foreign Currency

b) Gold

c) Special Drawing Rights

d) Reserve position in International Monetary Fund

e) Financial assets held by official agency.

($ trillions)

Balance on Current account -0.2

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1
Balance on current and capital account -0.1

Official Reserve Transaction Account

Officials Transactions Balance 0.1

Total(Balance) 0

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Answer 2

Question

Chapter 33, Problem 2P

To determine

(a)

Capital account balance

Explanation:

Current account-It is a part of balance of payments that records exchange of goods, services and unilateral transfers between domestic country and rest of the world.

Capital account-It is a part of balance of payments that records exchange of goods, services, unilateral transfers and purchase and sale of financial assets between domestic country and rest of the world,

Answer:

Balance on capital account ($ trillions)

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1

(b)

Change in official reserve

Explanation:

Official reserve is a part of balance of payment which has following components.

a) Foreign Currency

b) Gold

c) Special Drawing Rights

d) Reserve position in International Monetary Fund

e) Financial assets held by official agency.

($ trillions)

Balance on Current account -0.2

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1
Balance on current and capital account -0.1

Official Reserve Transaction Account

Officials Transactions Balance 0.1

Total(Balance) 0

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Answer 3

Question

Chapter 33, Problem 2P

To determine

(a)

Capital account balance

Explanation:

Current account-It is a part of balance of payments that records exchange of goods, services and unilateral transfers between domestic country and rest of the world.

Capital account-It is a part of balance of payments that records exchange of goods, services, unilateral transfers and purchase and sale of financial assets between domestic country and rest of the world,

Answer:

Balance on capital account ($ trillions)

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1

(b)

Change in official reserve

Explanation:

Official reserve is a part of balance of payment which has following components.

a) Foreign Currency

b) Gold

c) Special Drawing Rights

d) Reserve position in International Monetary Fund

e) Financial assets held by official agency.

($ trillions)

Balance on Current account -0.2

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1
Balance on current and capital account -0.1

Official Reserve Transaction Account

Officials Transactions Balance 0.1

Total(Balance) 0

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Answer 4

Question

Chapter 33, Problem 2P

To determine

(a)

Capital account balance

Explanation:

Current account-It is a part of balance of payments that records exchange of goods, services and unilateral transfers between domestic country and rest of the world.

Capital account-It is a part of balance of payments that records exchange of goods, services, unilateral transfers and purchase and sale of financial assets between domestic country and rest of the world,

Answer:

Balance on capital account ($ trillions)

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1

(b)

Change in official reserve

Explanation:

Official reserve is a part of balance of payment which has following components.

a) Foreign Currency

b) Gold

c) Special Drawing Rights

d) Reserve position in International Monetary Fund

e) Financial assets held by official agency.

($ trillions)

Balance on Current account -0.2

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1
Balance on current and capital account -0.1

Official Reserve Transaction Account

Officials Transactions Balance 0.1

Total(Balance) 0

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Answer 5

Chapter 33, Problem 2P

To determine

(a)

Capital account balance

Explanation:

Current account-It is a part of balance of payments that records exchange of goods, services and unilateral transfers between domestic country and rest of the world.

Capital account-It is a part of balance of payments that records exchange of goods, services, unilateral transfers and purchase and sale of financial assets between domestic country and rest of the world,

Answer:

Balance on capital account ($ trillions)

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1

(b)

Change in official reserve

Explanation:

Official reserve is a part of balance of payment which has following components.

a) Foreign Currency

b) Gold

c) Special Drawing Rights

d) Reserve position in International Monetary Fund

e) Financial assets held by official agency.

($ trillions)

Balance on Current account -0.2

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1
Balance on current and capital account -0.1

Official Reserve Transaction Account

Officials Transactions Balance 0.1

Total(Balance) 0

Answer 6

Chapter 33, Problem 2P

To determine

(a)

Capital account balance

Explanation:

Current account-It is a part of balance of payments that records exchange of goods, services and unilateral transfers between domestic country and rest of the world.

Capital account-It is a part of balance of payments that records exchange of goods, services, unilateral transfers and purchase and sale of financial assets between domestic country and rest of the world,

Answer:

Balance on capital account ($ trillions)

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1

(b)

Change in official reserve

Explanation:

Official reserve is a part of balance of payment which has following components.

a) Foreign Currency

b) Gold

c) Special Drawing Rights

d) Reserve position in International Monetary Fund

e) Financial assets held by official agency.

($ trillions)

Balance on Current account -0.2

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1
Balance on current and capital account -0.1

Official Reserve Transaction Account

Officials Transactions Balance 0.1

Total(Balance) 0

Answer 7

Chapter 33, Problem 2P

To determine

(a)

Capital account balance

Explanation:

Current account-It is a part of balance of payments that records exchange of goods, services and unilateral transfers between domestic country and rest of the world.

Capital account-It is a part of balance of payments that records exchange of goods, services, unilateral transfers and purchase and sale of financial assets between domestic country and rest of the world,

Answer:

Balance on capital account ($ trillions)

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1

(b)

Change in official reserve

Explanation:

Official reserve is a part of balance of payment which has following components.

a) Foreign Currency

b) Gold

c) Special Drawing Rights

d) Reserve position in International Monetary Fund

e) Financial assets held by official agency.

($ trillions)

Balance on Current account -0.2

Capital account

Private capital going to abroad -0.1

Foreign private capital coming 0.2

Balance on capital account 0.1
Balance on current and capital account -0.1

Official Reserve Transaction Account

Officials Transactions Balance 0.1

Total(Balance) 0

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 33 - Prob. 33.1LO Ch. 33 - Prob. 33.2LO Ch. 33 - Prob. 33.3LO Ch. 33 - Prob. 33.1SC Ch. 33 - Prob. 33.2SC Ch. 33 - Prob. 33.3SC Ch. 33 - Prob. 1CTQ Ch. 33 - Prob. 2CTQ Ch. 33 - Prob. 1FCT Ch. 33 - Prob. 2FCT

Capital account
Private capital going to abroad		-0.1
Foreign private capital coming	0.2
Balance on capital account	0.1

Balance on Current account		-0.2
Capital account
Private capital going to abroad		-0.1
Foreign private capital coming	0.2
Balance on capital account	0.1
Balance on current and capital account		-0.1
Official Reserve Transaction Account
Officials Transactions Balance		0.1
Total(Balance)		0

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Chapter 33 Solutions