Question

Ruritania is calculating its balance of payments for the year. All transactions for the year are...

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?

Homework Answers

Answer #2

answered by: anonymous
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
Ruritania is calculating its balance of payments for the year. All transactions for the year are...
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...
Ritania is calculating its balance of payments for the year. All transactions for the year are...
Ritania is calculating its balance of payments for the year. All transactions for the year are listed below (all amounts are expressed in US dollars). Ritania received weapons worth $200 from the US under its military program; no payment is necessary. A Ritanian firm exported $400 of cloth. A Ritanian resident is paid $10 in interest on a loan to a foreigner. Foreign tourists visited Ruritania and spent $100 in traveler’s checks. Ritanian investors invested $200 overseas and received $50...
Discuss the effect of the following transactions on the US Balance of Payments (BOP): Suppose a...
Discuss the effect of the following transactions on the US Balance of Payments (BOP): Suppose a US resident who has invested in UK government bonds (gilts). Each year, he receives £10,000 of coupon payments. Suppose these payments are directly paid into his UK bank account.
How would each item be counted in the US balance of payments? Give sign, category (e.g....
How would each item be counted in the US balance of payments? Give sign, category (e.g. export, FDI, income flow, etc.) and account (CA, FA or OR). Debit/Credit Category Account Walmarts, a US retailer, buys cut flowers from Chile Goldman Sachs, a US investment firm, earns $10m on its operations in London and sends the money back to NY. The US government gives $5m to the South African government to build health clinics Tata, an Indian firm, builds a new...
1.   A country’s balance of payments records: a.   the prices that a country pays for its...
1.   A country’s balance of payments records: a.   the prices that a country pays for its imports and the prices that the country receives for its imports. b.   the flows of value between that country’s residents and residents of the rest of the world during a period of time. c.   capital gains and losses on a country’s international assets. d.   the value of a country’s holdings of foreign assets, minus the value of foreign holdings of the country’s assets. 2.  ...
Indicate how each of the following transactions will be recorded in the Jordanian Balance of Payments....
Indicate how each of the following transactions will be recorded in the Jordanian Balance of Payments. Classify each transaction as either a credit or debit in the current account or the financial account. Determine the subcategory of each transaction within the account. 1. A Japanese automobile manufacturer pays the salary of its managers working for a subsidiary in Jordan. 2. A Jordanian tourist pays for a hotel in Istanbul with his American Express card. 3. A Jordanian professor goes abroad...
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...
Question 1: Construct the balance of payment table for Japan for the year 2010 which is...
Question 1: Construct the balance of payment table for Japan for the year 2010 which is comparable in format to Exhibit 3.1, page 66 (this page number from the version 6e, if you cannot find it, please let me know), to calculate the missing information data (Services; balance current account; balance on financial account; Statistical discrepancies). The table is provided on the second page. Please show your clearly calculation and explanation to support each number. A summary of the Japanese...
Mark’s Consulting experienced the following transactions for 2018, its first year of operations, and 2019. Assume...
Mark’s Consulting experienced the following transactions for 2018, its first year of operations, and 2019. Assume that all transactions involve the receipt or payment of cash. Transactions for 2018 Acquired $85,000 by issuing common stock. Received $135,000 cash for providing services to customers. Borrowed $22,000 cash from creditors. Paid expenses amounting to $53,000. Purchased land for $35,000 cash. Transactions for 2019 Beginning account balances for 2019 are: Cash $ 154,000 Land 35,000 Notes payable 22,000 Common stock 85,000 Retained earnings...
The transactions completed by Revere Courier Company during December, the first month of the fiscal year,...
The transactions completed by Revere Courier Company during December, the first month of the fiscal year, were as follows: Dec. 1. Issued Check No. 610 for December rent, $4,200. Dec. 2. Issued Invoice No. 940 to Clifford Co., $1,740 Dec. 3. Received check for $4,800 from Ryan Co. in payment of account. Dec. 5. Purchased a vehicle on account from Platinum Motors, $37,300. Dec. 6. Purchased office equipment on account from Austin Computer Co., $4,500. Dec. 6. Issued Invoice No....