Question

Here are some balance of payments data (without pluses and minuses): Merchandise exports, 100 Merchandise imports,...

  1. Here are some balance of payments data (without pluses and minuses):

    • Merchandise exports, 100

    • Merchandise imports, 125

    • Service exports, 90

    • Service imports, 80

    • Investment income receipts from assets, 110

    • Investment income payments on assets, 140

    • Transfers from home country to other countries, 10

    • Increase in home country’s ownership of assets abroad, 160

    • Increase in foreign ownership of assets in home country, 200

    • Increase in home reserve assets, 30

    • Increase in foreign reserve assets, 35

    Find the merchandise trade balance, net exports, the current account balance, the capital account balance, the official settlements balance, and the statistical discrepancy.

Homework Answers

Answer #1

Merchandise trade balance =Merchandise Exports-Merchandise Imports = 100 – 125 = -$25

Net export = Exports-Imports =X – M = (100 + 90) – (125 + 80) = -$15

Current Account balance = (100 + 90 + 110) – (125 + 80 + 140 + 10) = -$55

Capital Account balance = 200 – 160 = $40

Increase in home reserve assets is included in the increase in home country assets, so it is excluded Increase in foreign reserve assets is included in the increase in foreign assets in the home country. The changes in home and foreign reserve assets is used to calculate official settlements balance.

Official settlement balance = 30 – 35 = -5

Statistical discrepancy: Current Account+Capital Account+SD=0

-55+40+SD=0

SD=15

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following balance of payments data. (in billions of dollars): - Merchandise Exports: $100 -...
Consider the following balance of payments data. (in billions of dollars): - Merchandise Exports: $100 - Merchandise Imports: $125 -Service Imports: $90 -Service Exports: $80 -Income received from abroad: $110 -Income payments to foreigners: $150 -Increase in US ownership of private assets abroad: $160 -Increase in foreign ownership of private US assets: $200 -Increase in home official reserve assets: $30 -Increase in foreign official assets in US: $35 Assuming that unilateral transfers are zero, find the statistical discrepancy.
BALANCE OF PAYMENT Suppose the following data represent Zambia's international transactions measured in Kwacha Merchandise exports...
BALANCE OF PAYMENT Suppose the following data represent Zambia's international transactions measured in Kwacha Merchandise exports 18 Merchandise imports 13 Change in foreign assets in Zambia 15 Change in assets abroad 11 Exports of services 10 Imports of services 8 Income receipts on investment 8 Income payments on investment 13 Unilateral transfers 6 What is its balance on capital account? * 0 points Your answer What is its balance on current account? * 0 points Your answer What is Zambia’s...
If, in a country's balance of payments statement, the merchandise trade balance is $-100, services exports...
If, in a country's balance of payments statement, the merchandise trade balance is $-100, services exports and factor income receipts from abroad in total exceed services imports and factor income payments abroad by $25, unilateral transfers made exceed unilateral transfers received by $15, and the financial account has debits exceeding credits by $30, then the country's balance on current account is $-120. $-90. $-60. $-75.
If the overall balance in the balance of payments account is in _____, there can be...
If the overall balance in the balance of payments account is in _____, there can be an accumulation of official reserve assets by the country or a decrease in foreign official reserve holdings of the country's assets. surplus deficit equilibrium remission Answer: The current account balance does NOT equal: the difference between domestic product and domestic expenditure. the difference between national saving and domestic investment. net foreign investment. the difference between government saving and government investment. Answer: A nation is...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods Exports                                    +80 Goods Imports                                    -60 Service Exports                                  +30 Service Imports                                  -20 Net Investment Income                      -10 Net Transfers                                      +20 Balance on Capital Account               0 Foreign Purchases of Domestic Assets          +40 Domestic Purchases of Foreign Assets          -80 Calculate the following: a. Balance on goods. b. Balance on goods and services. c. Balance on current account. d. Balance on capital and financial account. e. Suppose that this...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods Exports                                                +80 Goods Imports                                    -60 Service Exports                                  +30 Service Imports                                   -20 Net Investment Income                      -10 Net Transfers                                      +20 Balance on Capital Account              0 Foreign Purchases of Domestic Assets           +40 Domestic Purchases of Foreign Assets           -80 Calculate the following: a. Balance on goods. b. Balance on goods and services. c. Balance on current account. d. Balance on capital and financial account. e. Suppose that this...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods Exports                                    +80 Goods Imports                                    -60 Service Exports                                   +30 Service Imports                                   -20 Net Investment Income                       -10 Net Transfers                                       +20 Balance on Capital Account               0 Foreign Purchases of Domestic Assets          +40 Domestic Purchases of Foreign Assets          -80 Calculate the following: a. Balance on goods. b. Balance on goods and services. c. Balance on current account. d. Balance on capital and financial account. e. Suppose that this...
Table 9.2 International Transactions Account Goods imports 250 Goods exports 200 Services imports 50 Services exports...
Table 9.2 International Transactions Account Goods imports 250 Goods exports 200 Services imports 50 Services exports 175 Net unilateral transfers -25 Investment income received 100 Investment income paid -50 Capital account -25 Net change in U.S. assets abroad 100 Net change in foreign assets in the U.S. -250 Net change in financial derivatives -25 Statistical discrepancy Based on Table 9.2, this country has a statistical discrepancy of 100 50 0 -100 -200
1) Over the course of a year, a nation tracked its foreign transactions and arrived at...
1) Over the course of a year, a nation tracked its foreign transactions and arrived at the following amounts: Merchandise exports 500 Service exports 75; Net unilateral transfers 10; Domestic assets abroad -200 Foreign assets at home (capital inflows) 300 Changes in official reserves -35 Merchandise imports 600 Service imports 50 What are this nation’s balance of trade, current account balance, and capital account balance?
2. Current, financial, and capital accounts Consider the following table showing hypothetical balance-of-payments data for the...
2. Current, financial, and capital accounts Consider the following table showing hypothetical balance-of-payments data for the United States. Complete the table by selecting the correct value for each missing entry. Balance-of-Payments (Billions of dollars) Current Account U.S. merchandise exports +65 U.S. merchandise imports -68 Merchandise trade balance -3 U.S. service exports +30 U.S. service imports -65    Services balance -35 Goods and services balance -38 Net investment income from abroad -2 Net unilateral transfers -5 Current account balance -45   ...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT