The current account balance, financial account balance, and the amount of increase in the official reserves.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 34, Problem 1SPPA

To determine

To calculate:

The current account balance, financial account balance, and the amount of increase in the official reserves.

Expert Solution & Answer

Explanation of Solution

Current account balance would consist of all national transactions such as trade in commodities and services.

Current account balance=(Exports−Imports+Net interest+Net transfers)=($50billion−$150billion+( −$10billion)+$35billion)=−$75billion

Financial account balance would involve all financial transactions such as investments, and dividends.

Financial account balance=(Foreign investments−Investments abroad)=$125billion−$55billion=$70billion

The official reserves of Antarctica would consist of the final balance of payments balance.

Balance of payment=(Current account balance+Financial account balance)=−$75billion+$70billion=−$5billion

Hence, Antarctica holds a negative balance of $5 billion in their official reserves.

Economics Concept Introduction

Balance of payment:

Balance of payment is a statement which contains all financial transactions between one country and the rest of the world for a specific time period.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

As a student of economics, what do you think are the major implications of Ukraine-Russia crisis? Consider a particular good or product then explain how this product affects the Philippines. USE economic theory or graphical presentations to explain/support your answers.

why is the recovery of global economy, especially the Euro Zone, so important to the South African Economy.

What is the current account status of the United States. Comment on the current status (is it acceptable, can it continue, etc.?)

Answer 2

Question

Chapter 34, Problem 1SPPA

To determine

To calculate:

The current account balance, financial account balance, and the amount of increase in the official reserves.

Expert Solution & Answer

Explanation of Solution

Current account balance would consist of all national transactions such as trade in commodities and services.

Current account balance=(Exports−Imports+Net interest+Net transfers)=($50billion−$150billion+( −$10billion)+$35billion)=−$75billion

Financial account balance would involve all financial transactions such as investments, and dividends.

Financial account balance=(Foreign investments−Investments abroad)=$125billion−$55billion=$70billion

The official reserves of Antarctica would consist of the final balance of payments balance.

Balance of payment=(Current account balance+Financial account balance)=−$75billion+$70billion=−$5billion

Hence, Antarctica holds a negative balance of $5 billion in their official reserves.

Economics Concept Introduction

Balance of payment:

Balance of payment is a statement which contains all financial transactions between one country and the rest of the world for a specific time period.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 34, Problem 1SPPA

To determine

To calculate:

The current account balance, financial account balance, and the amount of increase in the official reserves.

Expert Solution & Answer

Explanation of Solution

Current account balance would consist of all national transactions such as trade in commodities and services.

Current account balance=(Exports−Imports+Net interest+Net transfers)=($50billion−$150billion+( −$10billion)+$35billion)=−$75billion

Financial account balance would involve all financial transactions such as investments, and dividends.

Financial account balance=(Foreign investments−Investments abroad)=$125billion−$55billion=$70billion

The official reserves of Antarctica would consist of the final balance of payments balance.

Balance of payment=(Current account balance+Financial account balance)=−$75billion+$70billion=−$5billion

Hence, Antarctica holds a negative balance of $5 billion in their official reserves.

Economics Concept Introduction

Balance of payment:

Balance of payment is a statement which contains all financial transactions between one country and the rest of the world for a specific time period.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 34, Problem 1SPPA

To determine

To calculate:

The current account balance, financial account balance, and the amount of increase in the official reserves.

Expert Solution & Answer

Explanation of Solution

Current account balance would consist of all national transactions such as trade in commodities and services.

Current account balance=(Exports−Imports+Net interest+Net transfers)=($50billion−$150billion+( −$10billion)+$35billion)=−$75billion

Financial account balance would involve all financial transactions such as investments, and dividends.

Financial account balance=(Foreign investments−Investments abroad)=$125billion−$55billion=$70billion

The official reserves of Antarctica would consist of the final balance of payments balance.

Balance of payment=(Current account balance+Financial account balance)=−$75billion+$70billion=−$5billion

Hence, Antarctica holds a negative balance of $5 billion in their official reserves.

Economics Concept Introduction

Balance of payment:

Balance of payment is a statement which contains all financial transactions between one country and the rest of the world for a specific time period.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 34, Problem 1SPPA

To determine

To calculate:

The current account balance, financial account balance, and the amount of increase in the official reserves.

Expert Solution & Answer

Explanation of Solution

Current account balance would consist of all national transactions such as trade in commodities and services.

Current account balance=(Exports−Imports+Net interest+Net transfers)=($50billion−$150billion+( −$10billion)+$35billion)=−$75billion

Financial account balance would involve all financial transactions such as investments, and dividends.

Financial account balance=(Foreign investments−Investments abroad)=$125billion−$55billion=$70billion

The official reserves of Antarctica would consist of the final balance of payments balance.

Balance of payment=(Current account balance+Financial account balance)=−$75billion+$70billion=−$5billion

Hence, Antarctica holds a negative balance of $5 billion in their official reserves.

Economics Concept Introduction

Balance of payment:

Balance of payment is a statement which contains all financial transactions between one country and the rest of the world for a specific time period.

Answer 6

Chapter 34, Problem 1SPPA

To determine

To calculate:

The current account balance, financial account balance, and the amount of increase in the official reserves.

Expert Solution & Answer

Explanation of Solution

Current account balance would consist of all national transactions such as trade in commodities and services.

Current account balance=(Exports−Imports+Net interest+Net transfers)=($50billion−$150billion+( −$10billion)+$35billion)=−$75billion

Financial account balance would involve all financial transactions such as investments, and dividends.

Financial account balance=(Foreign investments−Investments abroad)=$125billion−$55billion=$70billion

The official reserves of Antarctica would consist of the final balance of payments balance.

Balance of payment=(Current account balance+Financial account balance)=−$75billion+$70billion=−$5billion

Hence, Antarctica holds a negative balance of $5 billion in their official reserves.

Economics Concept Introduction

Balance of payment:

Balance of payment is a statement which contains all financial transactions between one country and the rest of the world for a specific time period.

Answer 7

Chapter 34, Problem 1SPPA

To determine

To calculate:

The current account balance, financial account balance, and the amount of increase in the official reserves.

Answer 8

Expert Solution & Answer

Explanation of Solution

Current account balance would consist of all national transactions such as trade in commodities and services.

Current account balance=(Exports−Imports+Net interest+Net transfers)=($50billion−$150billion+( −$10billion)+$35billion)=−$75billion

Financial account balance would involve all financial transactions such as investments, and dividends.

Financial account balance=(Foreign investments−Investments abroad)=$125billion−$55billion=$70billion

The official reserves of Antarctica would consist of the final balance of payments balance.

Balance of payment=(Current account balance+Financial account balance)=−$75billion+$70billion=−$5billion

Hence, Antarctica holds a negative balance of $5 billion in their official reserves.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Balance of payment:

Balance of payment is a statement which contains all financial transactions between one country and the rest of the world for a specific time period.

Answer 12

Ch. 34 - Prob. 1SPPA Ch. 34 - Prob. 2SPPA Ch. 34 - Prob. 3SPPA Ch. 34 - Prob. 4SPPA Ch. 34 - Prob. 5SPPA Ch. 34 - Prob. 6SPPA Ch. 34 - Prob. 7SPPA Ch. 34 - Prob. 8SPPA Ch. 34 - Prob. 9SPPA Ch. 34 - Prob. 10SPPA

The current account balance, financial account balance, and the amount of increase in the official reserves.

To calculate: The current account balance, financial account balance, and the amount of increase in the official reserves.

Explanation of Solution

Want to see more full solutions like this?

Chapter 34 Solutions

To calculate:

The current account balance, financial account balance, and the amount of increase in the official reserves.