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

Question

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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.

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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.

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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.

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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

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Chapter 34 Solutions

To calculate:

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