Using the data in Question 3, calculate the capital account balance. Is the capital account balance...
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.
Homework Answers
Capital account balance records sales and purchases of assets like bonds, stocks, land etc. In other words, it is a net amount of home assets abroad and foreign assets in the home country.
It is required to calculate capital account balance based on data given in question 3.
According to question 3, all the transactions are made in goods, services, income, unilateral transfer and there is also statistical discrepancy. It is known that sum of capital account balance, current account balance and statistical discrepancy must be equal to zero.
The capital account balance is calculated as shown below:
Hence, there is a surplus in capital account balance of 
billions of dollars.
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Using the data in Question 3, calculate the capital account balance. Is the capital account balance...
Balance of Payments (Billions of s) Current Accounts Canadian merchandise exports Canadian mercha...
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...
Using the table below, calculate the following: • current account balance • the capital and financial...
Using the table below, calculate the following:
• current account balance
• the capital and financial account balance
• the official settlements account balance
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The following table shows a hypothetical balance-of-payments statement for the United States. All figures are in...
The following table shows a hypothetical balance-of-payments statement for the United States. All figures are in billions of dollars. Complete the table by filling in the missing cells. Balance of Payments (Billions of U.S. dollars) Current Account Goods and Services Exports 200 Goods and Services Imports -182 Trade Balance Income (net) -10 Current Account Balance Capital Account U.S. Capital Inflow 80 U.S. Capital Outflow -60 Capital Account...
The table below gives the data about Etruria's balance of payments. (All figures are in billions...
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Assignment Help The table below shows historical data on U.S. exports and imports of goods and...
Assignment Help The table below shows historical data on U.S. exports and imports of goods and services for five years. For each of these years, indicate whether the United States was running a trade surplus or deficit, and dollar amount of the surplus or deficit, and calculate thee ratio as a percent of the surplus or deficit to U.S. exports. Instructions: In the event a deficit, do NOT include a negative sign (-) for either the dollar amount or the...
The following table shows the value of credits and debits in four balance-of-payments accounts in the...
The following table shows the value of credits and debits in four balance-of-payments accounts in the fictional economy of Gamros. Balance-of-Payments Account Debits Credits (Billions of dollars) (Billions of dollars) Merchandise 60 40 Services 25 10 Income Receipts 45 30 Unilateral Transfers 15 15 Total 145 95 Based on the total values of Gamros’s debits and credits, there is money flowing out of Gamros to foreign countries than there is flowing into Gamros. This means that Gamros has a deficit...
Alpha’s balance-of-payments data for 2016 are shown below. All figures are in billions of dollars. Category...
Alpha’s balance-of-payments data for 2016 are shown below. All figures are in billions of dollars. Category Value Goods exports $+ 50 Goods imports – 35 Service exports + 25 Service imports – 10 Net investment income – 5 Net transfers + 10 Balance on capital account 0 Foreign purchases of Alpha assets + 25 Alpha purchases of assets abroad – 60 Instructions: Input all amounts as positive values. a. What is the balance on goods? b. What is the...
The balance of Payments on the Current Account is defined as? An example of international capital...
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The current account for a fictitious country is shown in the table below. The balance on...
The current account for a fictitious country is shown in the table below. The balance on the capital and financial account for this country is $12 billion. a. Fill in the missing values in the table. Instructions: Enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. 654 -11 CURRENT ACCOUNT (in billions of dollars) (1) Goods exports (2) Goods imports (3) Balance on...
capital account-current account financial account -japanese auto -chinese government -honduran worker -french company -u.k bonds -italian...
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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...
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...
Using the table below, calculate the following:
• current account balance
• the capital and financial account balance
• the official settlements account balance
Item Imports of goods and services Foreign investment in Nordland Exports of goods and services Nordland's investment abroad Net interest income Net transfers Statistical discrepancy Billions of dollars 1,200 1,000 1,500 600 7 - 10 - 20
The table below gives the data about Etruria's balance of payments. (All figures are in billions of dollars.) 92 Foreign investment in Etruria | Transfers (net) Foreign factor income from abroad Imports of goods and services Exports of goods and services Etruria's investment abroad Foreign factor income paid Jabroad a. What is the value of the balance of trade? b. What is the balance on the current account? Remember to enter a minus (-) sign to indicate negative values. c....
Assignment Help The table below shows historical data on U.S. exports and imports of goods and services for five years. For each of these years, indicate whether the United States was running a trade surplus or deficit, and dollar amount of the surplus or deficit, and calculate thee ratio as a percent of the surplus or deficit to U.S. exports. Instructions: In the event a deficit, do NOT include a negative sign (-) for either the dollar amount or the...
The current account for a fictitious country is shown in the table below. The balance on the capital and financial account for this country is $12 billion. a. Fill in the missing values in the table. Instructions: Enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. 654 -11 CURRENT ACCOUNT (in billions of dollars) (1) Goods exports (2) Goods imports (3) Balance on...
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account financial account
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-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...
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