Assume that a country’s balance-of-payments accounts are recorded correctly. If there is no change in a country’s offici...
Assume that a country’s balance-of-payments accounts are recorded correctly. If there is no change in a country’s official reserves account, a surplus in the capital account must be:
Multiple Choice
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None of the options.
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reflected in an appreciation of the country’s currency.
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reflected in a decrease in a country’s foreign indebtedness.
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offset by a surplus in the current account.
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offset by a deficit in the current account.
Homework Answers
If there is no change in a country’s official reserves account, a surplus in the capital account must be:
-
offset by a deficit in the current account.
Add Answer to:
Assume that a country’s balance-of-payments accounts are recorded correctly. If there is no change in a country’s offici...
If a country has a fixed exchange rate then the: Multiple Choice capital account surplus or...
If a country has a fixed exchange rate then the: Multiple Choice capital account surplus or deficit must be matched by a deficit or surplus in the official reserve account. current account surplus or deficit must be matched by a deficit or surplus in the official reserves account. official settlements balance will be equal in size, but opposite in sign, to the change in the official reserves. current and capital account balances will be equal in size, but opposite in...
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...
Suppose a country has a current account surplus of $8 billion, but a financial account deficit...
Suppose a country has a current account surplus of $8 billion, but a financial account deficit of $5 billion. a) Is its balance of payments a deficit, surplus or neither? The balance of payments is (select one). b) What change in official exchange reserves would you see? Note: Keep $0 for the second part if you think there is no change. The official exchange reserves would (select one) by $0 billion. c) Is the central bank buying or selling foreign...
In the table given below, Singapore’s balance of payments (BoP) comprises: (a) Current account of goods,...
In the table given below, Singapore’s balance of payments (BoP)
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(a) Current account of goods, services & factor income (primary
& secondary income balance)
(b) Capital & Financial account as DFI & Portfolio
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(d) A+B+C = BoP reflected in E
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(f) Official reserves (stock as accumulated over the years)
Explain the balance of payments position of Singapore and why
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estion 10 Government-to-government unilateral transfers are recorded in the current account of the balance of payments...
estion 10 Government-to-government unilateral transfers are recorded in the current account of the balance of payments of a nation. True False uestion 8 Income earned from foreign investments is recorded in the official settlement account of the balance of payments of a nation. True False uestion 7 The Official Settlement account of a balance of payment includes which of the following transactions? a. Exports of goods and services b. Foreign investment flows c. Income derived from foreign investments d. All...
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 $+ 50 Goods imports – 35 Service exports + 25 Service imports – 10 Net investment income – 5 Net transfers + 10 Balance on capital account 0 Foreign purchases of Alpha assets + 25 Alpha purchases of assets abroad – 60 Instructions: Input all amounts as positive values. a. What is the balance on goods? b. What is the...
Lukistan Balance of Payments Components of the Balance of Payments ($) Exports of goods and services...
Lukistan Balance of Payments Components of the Balance of Payments ($) Exports of goods and services + 440 Merchandise exports (including military sales) + 280 Exports of services + 40 Income Received from U.S. assets abroad + 120 Imports of goods and services – 490 Merchandise imports (including military purchases) – 360 Imports of services – 60 Income Received from foreign assets in U.S. – 70 Net unilateral transfers abroad – 11 Outflow of U.S. capital – 26 Inflow of...
QUESTION 4 Select all that are true regarding the balance of payments accounting: In a fixed...
QUESTION 4 Select all that are true regarding the balance of payments accounting: In a fixed exchange rate system the current and financial accounts will exactly offset since the exchange rate does not move In a perfectly flexible (freely floating) exchange rate system, there is no need for foreign reserves if world political economies are stable. A financial account deficit suggest that the country is increasing its debt A current account deficit allows a country to "live" beyond its means
Items Latest Period Latest Data % Change (Y-o-Y) Previous Period Data Balance of Payments S$M Q2/17...
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1. The Filipino balance of payments is not in the standard form as we discussed in...
1. The Filipino balance of payments is not in the standard form as we discussed in class. Convert the BOP into the standard form. Filipino Blalance of Payments (in million USS) 03 2017 2018 Current Account Capital Account Financial Account Errors and Omissions Official Reserves Overall BOP 0 0 Note: at the end of the exercise, please provide your converted BOP and write the student names in your group to receive credits. 2. Based on the BOP, what is your...
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...
Suppose a country has a current account surplus of $8 billion, but a financial account deficit of $5 billion. a) Is its balance of payments a deficit, surplus or neither? The balance of payments is (select one). b) What change in official exchange reserves would you see? Note: Keep $0 for the second part if you think there is no change. The official exchange reserves would (select one) by $0 billion. c) Is the central bank buying or selling foreign...
In the table given below, Singapore’s balance of payments (BoP)
comprises:
(a) Current account of goods, services & factor income (primary
& secondary income balance)
(b) Capital & Financial account as DFI & Portfolio
Investment
(c) Errors & Omissions
(d) A+B+C = BoP reflected in E
(e) Reserve Assets
(f) Official reserves (stock as accumulated over the years)
Explain the balance of payments position of Singapore and why
traditionally, its trade in services rather than trade in goods
dominated its...
QUESTION 4 Select all that are true regarding the balance of payments accounting: In a fixed exchange rate system the current and financial accounts will exactly offset since the exchange rate does not move In a perfectly flexible (freely floating) exchange rate system, there is no need for foreign reserves if world political economies are stable. A financial account deficit suggest that the country is increasing its debt A current account deficit allows a country to "live" beyond its means
1. The Filipino balance of payments is not in the standard form as we discussed in class. Convert the BOP into the standard form. Filipino Blalance of Payments (in million USS) 03 2017 2018 Current Account Capital Account Financial Account Errors and Omissions Official Reserves Overall BOP 0 0 Note: at the end of the exercise, please provide your converted BOP and write the student names in your group to receive credits. 2. Based on the BOP, what is your...
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