Option 'B' is correct.
Current account deficits are offset by financial account surpluses, In general the financial account is equal to net capital flows and which is equal to net foreign investment. Current account balance is approximately equals to net exports.
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Current account deficits are offset by: a. the liquidity balances. b. financial account surpluses. c. the...
Using the data in Question 3, calculate the capital account balance. Is the capital account balance a surplus or deficit?Question 3:Using the following data (billions of dollars) for a given year, calculate the balance on merchandise trade; balance on goods, services, and income; and the current account balance. Indicate whether these balances are deficits or surpluses.
How and why is current account and capital & financial account with net surpluses beneficial for a small and resource lacking economy (e.g Singapore)?
An equation that the deficits/surpluses in the three sectors of the economy (private, Government and foreign sectors) is as follows: (S-I)=(G-T)+(X-M) During 2012 Ireland had an external Current Account surplus of about 4.3% of GDP. During the same year, the fiscal deficit was 2.7% of GDP. Using this equation, please calculate the balance in the private sector. Comment on this situation
i) Write down an equation to illustrate the links between the deficits/surpluses in the three sectors of the economy (private, Government and foreign sectors). (ii) During 2013 Ireland had an external Current Account surplus of about 4.4% of GDP. During the same year, the fiscal deficit was 2.3% of GDP. Using your equation, please calculate the balance in the private sector. (iii) Comment on this situation.
Balance of Payments (Billions of s) Current Accounts Canadian merchandise exports Canadian merchandise imports Merchandise trade balance Canadian service exports Canadian service imports Services balance Goods and services balance Net investment income from abroad Net unilateral transfers Current account balance +65 -96 +55 +10 Financial Accounts Change in Canadian-owned assets abroad Change in foreign-owned assets in Canadian Financial account balance -16 +45 Statistical discrepancy Trade balance 0 Suppose a Canadian citizen gives money to her nephew in Belgium. This would...
The situation of a net creditor nation running current account deficits is worrisome if: a. investment is high and rising. b. the net creditor status is smaller and the deficit is larger. c. C + G per capita is falling rapidly. d. GDP growth rate is very high. e. real C + G per capita is very small.
1. Why do governments prefer to avoid excessive current account surpluses? Or, why are growing domestic claims to foreign wealth ever a problem? 2. What are the main objectives of IMF? What is IMF conditionality? How does IMF promote flexibility in external balance adjustment?
capital account-current
account financial account
-japanese auto
-chinese government
-honduran worker
-french company
-u.k bonds
-italian contrator
The Balance-of-Payments (BOP) Explained Intemational trade invalves the sale other countries (imports) goods and services to residents in other countries (exports) and the purchasse of goods and services from residents Country's balance-of- payments accounts keep track of the payments to, and receipts from, other countries for a particular time period. These include payments to forelgners for imports of goods and services, and receipts...
73. High inflation, increasing current account deficits and foreign debt are elements of which type of macro situation? A. business cycle B. political manocuvre C. legal fracture D. economic instability 74. When a firm is considering going global, it needs to assess not only current (economic) conditions, but also whether or not those conditions are А. favourable. B. competitive. C. sustainable. D. practical 75. A widespread downturn in activity, usually indicated by successive periods of negative economic growth, is referred...
QUESTIONS Explain the distinction between Current Account (international trade transactions) and Capital Account (international financial transactions) in the Balance of Payments.