Examine the summary of the balance of payments of the United States for 2021. Compute and discuss balance on the financial account and its subaccounts. A Summary of the U.S. Balance of Payments for 2021 (in $ billion) Current Account [1] Exports [1.1] Goods [1.2] Services [2] Imports [2.1] Goods [2.2] Services [3] Primary income [4] Secondary income Balance on current account [[1]+[2]+[3]+[4]] Capital Account Balance on capital account Financial Account (excluding official reserves) [5] Direct investment [6] Portfolio investment [6.1] Equity securities [6.2] Debt securities [6.3] Derivatives, net [7] Other investment Balance on financial account [[5]+[6]+[7]] [3] Statistical discrepancies Overall balance Official Reserve Account Credits $2,717.0 1,738.0 979.0 1,379.9 329.2 3.5 557.2 473.9 -414.1 591.3 296.7 786.4 1,165.2 83.2 Debits -$3,869.7 -2,938.6 -931.1 -1,063.0 -541.9 -1,048.5 -32.0 -28.5 -292.2 13.5 333.4 -319.9 -373.6 -5.0 -83.2

Examine the summary of the balance of payments of the United States for 2021. Compute and discuss balance on the financial account and its subaccounts. A Summary of the U.S. Balance of Payments for 2021 (in $ billion) Current Account [1] Exports [1.1] Goods [1.2] Services [2] Imports [2.1] Goods [2.2] Services [3] Primary income [4] Secondary income Balance on current account [[1]+[2]+[3]+[4]] Capital Account Balance on capital account Financial Account (excluding official reserves) [5] Direct investment [6] Portfolio investment [6.1] Equity securities [6.2] Debt securities [6.3] Derivatives, net [7] Other investment Balance on financial account [[5]+[6]+[7]] [3] Statistical discrepancies Overall balance Official Reserve Account Credits $2,717.0 1,738.0 979.0 1,379.9 329.2 3.5 557.2 473.9 -414.1 591.3 296.7 786.4 1,165.2 83.2 Debits -$3,869.7 -2,938.6 -931.1 -1,063.0 -541.9 -1,048.5 -32.0 -28.5 -292.2 13.5 333.4 -319.9 -373.6 -5.0 -83.2

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 43P: In 2001, the United Kingdoms economy exported goods worth 192 billion and services worth another 77...

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Examine the summary of the balance of payments of the United States for 2021. Compute and discuss the balance on the current account and its subaccounts. A Summary of the U.5. Balance of Payments for 2021 (in $ billion) Credits Debits Current Account [1] Exports $ 2,596.0 [1.1] Goods 1, 683.0 [1.2] Services 913.0 [2] Imports-53,374.7 [2.1] Goods-2, 663.6 [2.2] Services -711.1 [3] Primary Income 1,214.9-953.0 [4] Secondary income 219.2-376.9 Balance on current account [[1]+[2]+[3]+[4]-674.5 Capital Account 1.3-15.5 Balance on capital account -14.2 Financial Account (excluding official reserves) [5] Direct investment 392.2-182.2 [6] Portfolio investiment 308.9 13.5 [6.1] Equily securities -304.1 223 4 [6.2] Deht securities 481.3-209.9 [6.3] Derivatives, net 131.7 [7] Other Investment 456.4-263.6 Balance on financial account [[5]+[6]+[7]] 725.2 [8] Statistical discrepancies -3.0 Overall balance 33:5 Official Reserve Account -33.5 Source: The U.S. Bureau of Economic Analysis Required: a1.…
What is nation’s current account balance on its balance of payments given the following information? Imports: $206 Exports: $250 Government spending abroad: $33 Direct investment abroad; $34 Foreign purchases of U.S. securities: $33 Net income from investment abroad: $71
U.S. goods exports +$ 390 U.S. goods imports - 520 U.S. service exports +145 U.S. service imports -107 Net investment income +12 Net transfers -22 Capital account -5 Foreign purchases of U.S. assets +156 U.S. purchases of foreign assets -49 The accompanying table contains hypothetical data for the U.S. balance of payments in a year. All figures are in billions of dollars. The balance on the financial account was a A. $107 billion surplus. B. $102 billion surplus. C. $107 billion deficit. D. $102 billion deficit.
Suppose you know that exports for a nation are $24 billion and imports are $25 billion, Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Complete the balance of payments table below using the information above. Current Account (billions) Credits 24 $ Financial Account (billions) Credits Capital Account (billions) Credits Debits Debits Debits $30 $26 $4 $7 b. What is the net balance of each account? Current account: $[ billion Financial account: $ billion Capital account: $ billion c. What is the sum of all accounts? %24 billion
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Based on the Balance of Payments in the table below, what is the statistical discrepancy (with positive or negative symbol)? Balance of Payments (1) Exports of goods and services (2) Goods (3) Services (4) Imports of goods and services (5) Goods (6) Services (7) Balance of goods and services (8) Income receipts on investments (9) Income payments on investments (10) Unilateral transfers (11) Current account balance (in billions of dollars) (12) U.S. owned assets abroad (Change in; Increase is a "-".) (13) Foreign-owned assets in U.S. (Change in; Increase is a "+".) (14) Net financial derivative transactions (15) Financial account balance (16) Statistical discrepancy 2,974 870 -2,400 -320 -980 260 20 1,420 -1,600 -250
You have the following annual figures for the New Zealand economy. Investment expenditure $40.6 billion Net Exports $3.6 billion Net Foreign Income -$9.5 billion The current account balance is equal to $____billon (use 1 d.p. and a negative sign if the balance you have calculated is a deficit). New Zealand domestic savings is equal to $____billon (use 1 d.p.). Suppose that the government introduces a policy that bans foreign investment in New Zealand. If that happens then (everything else held constant) we would expect to see the current account balance -rise -remain the same. -fall -become harder to predict Suppose that along with the above policy, the government also wishes to see investment levels maintained. If that is to occur, what else must be happening in the economy? - The Government must raise taxes. - Firms must be offered incentives to invest. - New…
Use the following to answer question 4-6. Table 1: Hypothetical National Income and Product Accounts Data Billions of dollars Category Consumption (personal consumption expenditures) Investment (gross private domestic investment) Government consumption (government expenditures) Exports of goods and services Imports of goods and services Foreign income payments to domestic factors Domestic income payments to foreign factors 500 200 200 50 150 20 10 Net unilateral transfers -10 Capital account balance -10 Statistical discrepancy 4. The current account balance for the economy provided is A) -$100 billion dollars B) $100 billion dollars C) -$90 billion dollars D) $90 billion dollars 5. The national saving for the economy provided is A) $200 billion dollars B) $100 billion dollars C) -$100 billion dollars D) -$200 billion dollars 6. The financial account balance for the economy provided is A) $100 billion dollars B) -$100 billion dollars C) $110 billion dollars D) -$110 billion dollars
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?
Question 2 Table 1 represents the components of the UAE current account balance during 2019-2020. Table 1 Current Account Balance in Billion Dirhams 2019 2020 Exports: Goods 1152.4 1003.0 228.2 Services Total Exports Imports: Goods 331.5 856.9 774.1 Services 323.9 218.6 Total Imports Net Exports Net transfers + investment income net Investment income Net 7.6 -1.7 Net transfers Total Transfers Current account Balance Source Central Bank of UAE -173.6 -159.7 1. Complete table 1 2. Interpret your results.
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