Consider the following Balance of Payments information for the private sector ("a the line"). If the central bank had $100,000 of international reserves, what would E their new international reserves after they balance the BOP? Private Sector Total Export a car Import a machine 43,000 65,000 Net Exports $ (22,000) Sell a domestic apartment to foreigners Buy a foreign stock from foreigners 39,000 E000

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter6: An Introduction To The Foreign Exchange Market And The Balance Of Payments
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Consider the following Balance of Payments information for the private sector ("above
the line"). If the central bank had $100,000 of international reserves, what would be
their new international reserves after they balance the BOP?
Private Sector
Total
Export a car
2$
43,000
Import a machine
65,000
Net Exports $ (22,000)
Sell a domestic apartment to foreigners
Buy a foreign stock from foreigners
2$
39,000
2$
Total Private Capital Flows
82,000 $
5,000
34,000
Total "above the line" Private Sector
70,000 $ 12,000
Transcribed Image Text:Consider the following Balance of Payments information for the private sector ("above the line"). If the central bank had $100,000 of international reserves, what would be their new international reserves after they balance the BOP? Private Sector Total Export a car 2$ 43,000 Import a machine 65,000 Net Exports $ (22,000) Sell a domestic apartment to foreigners Buy a foreign stock from foreigners 2$ 39,000 2$ Total Private Capital Flows 82,000 $ 5,000 34,000 Total "above the line" Private Sector 70,000 $ 12,000
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