Ruritania is calculating its balance of payments for the year.
All transactions for the year are listed below (all amounts are
expressed in US dollars).
- Ruritania received weapons worth $200 from the US under its
military program; no payment is necessary.
- A Ruritanian firm exported $400 of cloth.
- A Ruritanian resident is paid $10 in interest on a loan to a
foreigner.
- Foreign tourists visited Ruritania and spent $100 in traveler’s
checks.
- Ruritanian investors invested $200 overseas and received $50 in
interest on the investment that same year.
- A Japanese construction firm received a $150 installment
payment for work done in Ruritania.
- Calculate Ruritania’s current account (CA) and Financial
Account (FA) balances.
- What change in the official reserve (OR) account is implied
such that the balance of payments balances?