EC290 Lecture Notes - Lecture 22: Pearson Plc
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The following table lists balance of payment current accounts for Country A.
Current Accounts | |||
1. | Exports of goods, services, and income | Ā | $169,928 |
2. | Goods, adjusted, excluding military | $94,068 | Ā |
3. | Services | 46,889 | Ā |
4. | Income receipts on U.S. assets abroad | 31,921 | Ā |
5. | Imports of goods, services, and income | Ā | 151,536 |
6. | Goods, adjusted, excluding military | 84,707 | Ā |
7. | Services | 32,289 | Ā |
8. | Income payments on foreign assets in the United States | 35,740 | Ā |
9. | Unilateral transfers, net | Ā | 9,481 |
A. What is Country A's total current accounts? _________$ Total current accounts B. What is Country A's balance on goods? _________$ Balance on goods C. What is Country A's balance on services? __________$ Balance on services D. What is Country A's balance on investment income? (Negative amount should be indicated by a minus sign.) __________$ Balance on investment income |
QUESTION 10
Below is a table for the Balance of Payments of Goegania, a prosperous island nation.
Current Account | Ā | Financial Account | ||||
Exports of Goods | $1,940 | Ā | Capital Inflow | $661 | Ā | |
Imports of Goods | ??? | Ā | Capital Outflow | $347 | Ā | |
Trade Balance | Ā | ??? | Financial Account | Ā | ??? | |
Exports of Services | $569 | Ā | Capital Account | Ā | $0 | |
Imports of Services | ??? | Ā | Statistical Discrepancy | Ā | $0 | |
Services Balance | Ā | $16 | Balance of Payments | Ā | ??? | |
Income Received on Investments | $704 | Ā | Ā | Ā | Ā | |
Income Paid on Investments | $505 | Ā | Ā | Ā | Ā | |
Net Income on Investments | Ā | ??? | Ā | Ā | Ā | |
Net Transfers | Ā | $-168 | Ā | Ā | Ā | |
The balance on the Current Account | Ā | ??? | Ā | Ā | Ā |
Given this information, what is the value for the imports of goods?
Sometimes this question generates some weird numbers. Remember that you would always add the values in a category to get the total. So the total for the Financial Account is always Capital Inflow + Capital Outflow and the Trade Balance is always Exports + Imports for this table. It's just that sometimes those values being added are negative. If you get a negative answer, you should enter in the negative.
Exports of goods & services | $1000 |
Imports of goods & services | $800 |
The net change in assets owned abroad | $590 |
The net change in foreign-owned assets at home | $400 |
Unilateral transfers received | $100 |
Unilateral transfers paid | $200 |
Investment income paid to foreigners | $300 |
Investment income received from foreigners | $400 |
The balance on the capital account | $0 |
1. The balance on the current account is A) $100. B) $200. C) 0. D) - $100
2. The balance on the financial account is A) -$90. B) -$190. C) $100. D) $200
3. The statistical discrepancy is A) -$5. B) $5. C) $10. D) -$10
4. From the domestic economy's perspective,
A) there is a net international capital inflow equal to $190.
B) there is a net international capital outflow equal to $190.
C) the net international capital flow is zero.
D) its domestic absorption exceeds its GNP by $200.