Question

Use the following information to answer the questions below. Assume that the capital account is equal to 0. Export of goods and services = 500 Primary income recieved = 200 Secondary income recieved = 300 Imports of goods and services = 700 Primary income paid abroad = 300 Secondary income paid = 100 Net acquisition of financial assets = 300 Net incurrence of liabilities = 400 Net change in financial derivatives = 600 Questions 1. What is the trade balance? 2. What is the current account balance? 3. Does the financial account equal the current account plus the capital account balance? 4. What is the statistical discrepancy?

Answer 1