List the relationships that define the balance of payments, and explain where in the Hong Kong balance of payments an entry would be made for each of the following: (a) Hong Kong people donate some goods to Macau in December 2019.  (b) The Hong Kong government sells a 5-year bond to a prince in Saudi Arabia.

The table gives some information about U.S. international transactions in 2015 Calculate the balance on the three balance of payments accounts. Was the United States a net borrower or a net lender? Explain your answer. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. The current account balance is billion dollars. The capital and financial account balance is The official settlements account balance is billion dollars. U.S. official reserves are The United States is a investment abroad. billion dollars. because foreign investment in the United States A. net borrower; exceeds B. net lender; exceeds C. net borrower; is less than O D. net lender; is less than U.S. Item Imports of goods and services Foreign investment in the United States Exports of goods and services U.S. investment abroad Net interest income Net transfers Statistical discrepancy Billions of dollars 2,764 502 2,264 175 193 - 127 101

If the current account is in surplus and the capital account is zero, then the financial account must be in deficit. the trade balance must be in deficit. the balance of payments must be in deficit. there is a capital inflow.

From time to time, a government official will argue that a country should strive for both a trade surplus and a healthy inflow of capital from abroad. Is this possible?