Which of the following is a part of the current account in the balance of payments? A) Foreign investments B) Exports and imports of goods and services C) Changes in foreign exchange reserves D) Loans to foreign governments
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- Which of the following is included in a nation's current account? a) Purchases of foreign assets b) Borrowings from abroad c) Foreign purchases of U.S. financial assets d) Investment income receipts e) Purchases of foreign real propertyThe table below depicts the Balance of Payments for Country A. (a) State Country A’s trade balance(b) State Country A’s current account balance(c) State Country A’s financial account balanceThe table below gives the data about Etruria's balance of payments. (All figures are in billions of dollars.) Foreign investment in Etruria 82 Secondary (transfers) income received from abroad 13 Primary (investment) income received from abroad 9 Imports of goods and services 148 Exports of goods and services 152 Secondary (transfers) income paid abroad 8 Etruria investment abroad 64 Primary (investment) income paid abroad 25 a. What is the value of the balance of trade? $ b. What is the balance on the current account? Remember to enter a minus (−) sign to indicate negative values. c. What is the balance on the capital account? d. Is there a balance of payments surplus or deficit? How much?
- Who would demand U.S. dollars in the foreign exchange market? U.S. firms and households wishing to purchase foreign goods and services Foreigners wishing to purchase U.S goods and services U.S. households wishing to purchase U.S. goods and servicesThe GDP for the United States is $18,036 billion and its current account balance is –$484 billion. What percent of GDP is the current account balance?Discuss three factors that would impact the values of the major currencies in foreign exchange
- The table below contains 2014 balance of payments accounts for Germany (in billions of Euros). Calculate the merchandise trade balance, the balance on goods and services, and the current account balance. Exports of goods services and income receipts (credits) 2,095 Exports of goods and services 1,756 Goods 1,479 Services 277 Primary income receipts 259 Secondary income receipts 78 Imports of goods services and income payments (debits) 1,814 Imports of goods and services 1,510 Goods 1,179 Services 330 Primary income payments 171 Secondary income payments 132 Merchandise trade balance (balance on goods) Balance on goods and services Current account balanceThe following table shows a hypothetical balance-of-payments statement for the United States. All figures are in billions of dollars. Complete the table by filling in the missing cells. Balance of Payments (Billions of U.S. dollars) Current Account Goods and Services Exports 200 Goods and Services Imports -182 Trade Balance Income (net) -10 Current Account Balance Capital Account U.S. Capital Inflow 80 U.S. Capital Outflow -60 Capital Account Balance Statistical Discrepancy According to the table, the United States is running a trade . The net balance of payments equals billion.Which of the following would most likely be included in the positive side of the U.S. current account balance? a. U.S. foreign aid sent to as disaster relief to Haiti b. interest payments to foreign investors invested in the U.S. c. money earned by U.S. firms in Europe d. money spent by U.S. tourists in Europe
- Exports $750 Imports $600 Net income from abroad -$225 Net unilateral transfers $30 Based on the data above, what is the current account and financial/capital account balance? The current account is in deficit, and the financial/capital account is in surplus. The current account and financial/capital account are both in deficit. The current account and financial/capital account are both in surplus. The current account is zero, and the financial/capital account is in surplus.How do international investment activities affect exchange rates?You have the following annual figures for the New Zealand economy. Investment expenditure $40.6 billion Net Exports $3.6 billion Net Foreign Income -$9.5 billion The current account balance is equal to $____billon (use 1 d.p. and a negative sign if the balance you have calculated is a deficit). New Zealand domestic savings is equal to $____billon (use 1 d.p.). Suppose that the government introduces a policy that bans foreign investment in New Zealand. If that happens then (everything else held constant) we would expect to see the current account balance -rise -remain the same. -fall -become harder to predict Suppose that along with the above policy, the government also wishes to see investment levels maintained. If that is to occur, what else must be happening in the economy? - The Government must raise taxes. - Firms must be offered incentives to invest. - New…