Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
8th Edition
ISBN: 9780134641843
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 34, Problem 2IAPA
To determine
To calculate:
The current account balance, capital account balance, financial account balance, government sector and private sector balance.
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Students have asked these similar questions
The record of a country's transactions in goods, services, and assets with the rest of the world is its
A) balance of trade account. B) current account.
C) capital account. D) balance of payments account
Here are data for the U.S. balance of payments in a given year. All figures are in billions of dollars. Answer all of the following:
a.The balance of trade in goods and services is $____billion.
Balance of trade= (1635+709)-(478+2371)= -505
b. The current account balance is $____billion.
Current account= (-505+218)= -287. (-287-124)= -411
c.The capital and financial account balance is $____billion.
Capital and financial account= (1044-632)=412. (412-1)=411
d. The overall balance of payments balance is $____ billion. Explain why this must be so.
balance of payments= -411+411= 0
Here's is the information table:
Foreign purchases of US assets - 632
Goods imports - 2,371
Service imports - 478
Net investment income +218
Service exports +709
Goods exports +1,635
Balance on the capital account -1
Net transfers -124
US purchases of assets abroad +1,044
Can you please check if my answer is correct and explain to me why answer d the overall balance of payments must be so?
QUESTION 12
Table 1 shows the summary of China's balance of payments and net international investment position. Please mark the only
INCORRECT statement about Table 1.
Source: IMF
BALANCE OF PAYMENTS (Percent of GDP)
Current account balance
Trade balance
Services balance
Net international investment position
Gross official reserves (billions of U.S. dollars)
Table 1. China: Selected Economic Indicators¹
2017 2018
2016
1.7
4.4
-2.1
17.7
3,098
1.5
3.9
-2.1
-2.1
16.8
15.2
3,236 3,168
0.2
27
2019
2020
0.7
1.8
2.7
3.5
-1.8
-1.0
16.0
14.5
3,223 3,357
2021
1.6
3.0
-0.7
13.8
3,448
2022
1.5
2.7
-1.0
14.0
3,696
China's low stock of gross official reserves suggests that the nation is vulnerable to a balance of payment crisis and a large
a. devaluation of the CNY
b. China's large NIIP should be consistent with the fact that it supplies capital and invests in the rest of the world
c. The fact that China has a large and positive NIIP position means that the has relatively high savings rates
d. China…
Chapter 34 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
Ch. 34 - Prob. 1SPPACh. 34 - Prob. 2SPPACh. 34 - Prob. 3SPPACh. 34 - Prob. 4SPPACh. 34 - Prob. 5SPPACh. 34 - Prob. 6SPPACh. 34 - Prob. 7SPPACh. 34 - Prob. 8SPPACh. 34 - Prob. 9SPPACh. 34 - Prob. 10SPPA
Ch. 34 - Prob. 1IAPACh. 34 - Prob. 2IAPACh. 34 - Prob. 3IAPACh. 34 - Prob. 4IAPACh. 34 - Prob. 5IAPACh. 34 - Prob. 6IAPACh. 34 - Prob. 7IAPACh. 34 - Prob. 8IAPACh. 34 - Prob. 1MCQCh. 34 - Prob. 2MCQCh. 34 - Prob. 3MCQCh. 34 - Prob. 4MCQCh. 34 - Prob. 5MCQCh. 34 - Prob. 6MCQCh. 34 - Prob. 7MCQCh. 34 - Prob. 8MCQ
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- Prepare a suitable diagram showing balance of trade from the following data. Year-1994,1995,1996,1997,1998,1999 export-24,115,84,110,130,162 import-9,92,92,120,183,187arrow_forwardThe following table shows a hypothetical balance-of-payments statement for the United States. All figures are in billions of dollars. Complete the table by filling in the missing cells. Balance of Payments (Billions of U.S. dollars) Current Account Goods and Services Exports Goods and Services Imports Trade Balance Income (net) Current Account Balance Capital Account 200 -182 -10 U.S. Capital In flow U.S. Capital Outflow Capital Account Balance Statistical Discrepancy According to the table, the United States is running a trade. The balance of payments equals__________ billion. 80 -60 _(deficit,surplus).arrow_forwardWhat 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: $71arrow_forward
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