Question

Amount Transaction Transaction (Year 2017) number 1 Interest paid by a Country B's corporation on a bond owned by a Country A's bank $1000 S2000 Interest paid by Country A's government on a treasury bills owned by Country C's government $3000 54°000 3 Country A imports of coffee from Country B Country A's citizen donation to a Non-Governmental Organization located in Country A 5 Country A's sale of Country C's government bonds $5*000 6 Country B's export of raw materials to Country C 56'000 What is Country B's current account balance in 2017 (assuming there are no other transactions)? QUESTIONS Table 1 Transaction number Transaction (Year 2017) Amount $1000 1 Interest paid by a Country B's corporation on a bond owned by a Country A's bank 2 Interest paid by Country A's government on a treasury bills owned by Country C's government 52 000 $3000 S4000 3 Country A imports of coffee from Country B 4 Country A's citizen donation to a Non-Governmental Organization located in Country A Country As sale of Country C's government bonds $5 000 6 Country B's export of raw materials to Country C 55000 What transactions belong to Country C's financial accounts?

Answer 1

Answer:

Country B's current account balance in 2017 is:

Current Account is composed of exports and imports of the goods and services, income receipts and payment, net interest income and net unilateral transfers

i.e

Current account of a country includes -

1. Exports and imports of goods and services

2. Interest income earned on assets from abroad or interest income paid to foreigners.

3. Transfer income paid or received by a country.

Hence 6 is a part of CA since it is an export,

3 is a part of CA since it is an import,

1 is a part of CA since this is interest paid,

4 is not a transfer made to any global nation.

Hence ,

select 1, 3 and 6.

Question 5:

Transactions that belong to country C's financial accounts:

the financial account includes ownership of foreign or domestic assets and theses assets include direct and portfolio investments, stocks , bonds , currency or gold etc

Hence,

none of them here are belonging to financial accounts.