Homework Answers
The capital account of the country records the transaction in the financial asset, it is done by both long term and short term borrowing. This includes the direct and portfolio investments , the portfolio investments are the buying and selling of the securities and such financial assets. The current account of the country records the trade in goods and service that is the export and import. Here there is a inflow of financial assets to the U.S so this increase the financial account balance and the current account will be unaffected.
Ans: Increase in financial account; the current account will stay the same.
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need solutions of question 2,3 and 4.
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I
need solutions of question 2,3 and 4.
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Pleased read carefully I need solutions of questions 3 and 4.
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