Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Chapter 6, Problem 6E
To determine
Given the information regarding the external sector of Mexico, whether the country has come a net debtor.
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The following table contains hypothetical data for Canada's balance of payments in a particular year.
Exports of goods and services
$160
Imports of goods and services
$140
Primary income (investment income received from abroad)
$15
Primary income (investment income paid from abroad)
$25
Secondary income (Net transfers)
$10
Foreign investment in Canada
$220
Canadian investment abroad
$240
Refer to the information above to answer this question. Which of the following reflects the state of Canada's capital account?
Multiple Choice
It has a deficit of $10 billion.
It has a deficit of $20 billion.
It has a surplus of $5 billion.
It has a surplus of $30 billion.
Exports of goods and services
1,872
Imports of goods and services
2,375
Net unilateral transfers
-99
Net Investment Income
170
Capital Account
-7
Net US acquisition of financial assets
958
Net US incurrence of liabilities
1,391
Net financial derivatives
-14
Based on the table above, the balance on the financial account is
Group of answer choices
454
447
-14
-447
Use the excel file above to answer the following questions.
1. What is the real exchange rates for each country?
2. Which countries have a premium value of the dollar?
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Similar questions
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- The data in Table 12-1 end in 2011. Visit the U.S. Bureau of Economic Analysis at bea.gov to find information for the latest full calendar year (or for the last four quarters). What is the latest estimate of the size of the annual U.S. current account deficit in billions of dollars?arrow_forwardExplain why you agree or disagree with the following statements: A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.arrow_forward33. Of the following, the one that appears in the current account of the balance of payments is Question 33 options: a) income earned by U.S. subsidiaries of Barclay's Bank of London. b) an Italian investor's purchase of IBM stock. c) a loan by a Swiss bank to an American corporation. d) a purchase of a British Treasury bond by the Fed.arrow_forward
- In 2018, Germany had the world’s largest current account surplus of US$291 billion. Using this one piece of information, answer the following questions. a. Which was greater, the income Germans earned from abroad or incomes paid abroad from Germany? b. What is Germany’s financial account balance? Is it a surplus or deficit? c. Were financial inflows or financial outflows greater for Germany? d. Was total spending or total income greater in Germany in 2018?arrow_forwardChina had a $372 billion overall current account surplus in 2007. Assuming that China’s net debt forgiveness was zero in 2007 (its capital account balance was zero), what can you specifically conclude about the relationship of Chinese purchases of financial and real assets abroad versus foreign purchases of Chinese financial and real assets? Explain.arrow_forwardChoose the correct. Which of the following combinations correctly describes the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses? Types of transaction Foreign currency Foreign exchange gain or loss a. Export sale Appreciates Loss b. Import purchase Appreciates Gain c. Import purchase Depreciates Gain d. Export sale Depreciates Gainarrow_forward
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