MGEC61H3 Lecture 1: 2015 Winter assignment 1 solution
24 Feb 2015
School
Department
Course
Professor
Document Summary
Grading: the superscripts attached to the answers only aim at providing explanations on how to get the answers; however, the order of filling in the table does not necessary follow the number given to the explanation. 0. 5 point will be subtracted for each mistake. I = 0. 285y: the central bank of beta finds its stock of official reserves fall by 420, which implies it is a net seller (exporter) of foreign assets credit entry under ort, given in the question. Since residents of beta receive a (net) total asset transfer of 80 from the other countries, beta is receiving a payment there will credit entry for beta under. Capital account (because no market transactions are involved in these asset transfers) see page 296 of text. Note: asset transfer between beta and omega is zero. Purchases/imports of foreign financial assets by domestic residents] + ort. Ra rj = 0. 0186 (1. 86%) ra = rj + 0. 0186.
