Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 34, Problem 1MCQ
To determine
The components of the current account balance.
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Students have asked these similar questions
What is the capital and financial account balance... billion dollars
The official settlements account balance is ... billion dollars
The table gives some information about Nordland's international transactions in 2016.
Calculate the current account balance, the capital and financial account balance, and the official settlements account balance.
>>> 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.
Item
Imports of goods and services
Foreign investment in Nordland
Exports of goods and services
Nordland's investment abroad
Net interest income
Net transfers
Statistical discrepancy
Billions
of dollars
900
1,200
1,250
500
6
- 70
- 10
Foreign investment is counted under capital account of balance of payments.
True/False
Chapter 34 Solutions
Foundations of Economics (8th Edition)
Ch. 34 - Prob. 1SPPACh. 34 - Prob. 2SPPACh. 34 - Prob. 3SPPACh. 34 - Prob. 4SPPACh. 34 - Prob. 5SPPACh. 34 - Prob. 6SPPACh. 34 - Prob. 7SPPACh. 34 - Prob. 8SPPACh. 34 - Prob. 9SPPACh. 34 - Prob. 10SPPA
Ch. 34 - Prob. 1IAPACh. 34 - Prob. 2IAPACh. 34 - Prob. 3IAPACh. 34 - Prob. 4IAPACh. 34 - Prob. 5IAPACh. 34 - Prob. 6IAPACh. 34 - Prob. 7IAPACh. 34 - Prob. 8IAPACh. 34 - Prob. 1MCQCh. 34 - Prob. 2MCQCh. 34 - Prob. 3MCQCh. 34 - Prob. 4MCQCh. 34 - Prob. 5MCQCh. 34 - Prob. 6MCQCh. 34 - Prob. 7MCQCh. 34 - Prob. 8MCQ
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- The table gives some information about Nordland's international transactions in 2016. Calculate the current account balance, the capital and financial account balance, and the official settlements account balance. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. GEXES The current account balance is -111 billion dollars. The capital and financial account balance is The official settlements account balance is bilion dollars. 460 billion dollars. Item Imports of goods and services Foreign investment in Nordland Exports of goods and services Nordland's investment abroad Net interest income Net transfers Statistical discrepancy Billions of dollars 1,400 1,100 1,350 600 9 -70 -40arrow_forwardThe capital account balance is a nation's: net investment income minus its net transfers exports of goods and services minus its imports of goods and services sale of real and financial assets to people living abroad minus its purchases of real and financial assets from foreigners domestic investment spending minus domestic savingarrow_forwardWhen natural disasters like a hurricane, tsunami, or earthquake occur in other countries of the world, Americans donate to help the victims of such disasters. These donations A) Are part of export services recorded in the balance of payments account B) Are part of import services recorded in the balance of payments account C) Are part of net transfers recorded in the balance of payments accountarrow_forward
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- QUESTION 2When the interest parity condition holds, we know that the domestic interest rate must be approximately equal to: the foreign interest rate. the expected rate of depreciation of the domestic currency. the expected rate of appreciation of the domestic currency. the foreign interest rate minus the expected rate of appreciation of the domestic currency. the foreign interest rate plus the expected rate of appreciation of the domestic currency.arrow_forwardItem Exports of goods and services Imports of goods and services Net interest income Net transfers Urland's investment abroad Foreign investment in Urland 30. A) B) Billions of dollars 635 . -555 -18 22 -467 321 02.0 The above table shows some of the balance of payments accounts for Urland. What is Urland's balance in the official settlements account? $405 billion $62 billion $99 billion $37 billion nożliarrow_forwardEconomics Here is some balance of payments data for a country (in bln USD): Merchandise export = 200 Merchandise import = 180 Primary income payments from abroad = 5O Primary income payments to non-residents 70 Unilateral international transfers from abroad = 10 Unilateral international transfers to non- residents = 5 Capital account balance = 0 Change in foreign direct investment to abroad = 15 Change in foreign direct investment from abroad = -25 Balance on portfolio investmenti= 50 Balance on other investmentii= -80 Change in international reservesiii= -10 Net errors and omissions = -30 Find the balance on trade in services for the given period.arrow_forward
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