Option 'B' is correct.
Current account deficits are offset by financial account surpluses, In general the financial account is equal to net capital flows and which is equal to net foreign investment. Current account balance is approximately equals to net exports.
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Current account deficits are offset by: a. the liquidity balances. b. financial account surpluses. c. the...
Public debt is the: Select one: a. ratio of all past deficits to all past surpluses. b. difference between current government expenditures and revenues. c. total household and corporate debt d. total of all past deficits minus all past surpluses.
Please answer all, or as many of the following. Thank you. 1. Country A runs current account surpluses. Which statement below is correct? (a) Country A is a lender in international capital markets. (b) Country A is a borrower in international capital markets. (c) Country A is a creditor in international capital markets. (d) Country A is a debtor in international capital markets. 2. Country B runs twin deficits. Which statement below is correct? (a) Country B runs fiscal deficits...
How and why is current account and capital & financial account with net surpluses beneficial for a small and resource lacking economy (e.g Singapore)?
Using the data in Question 3, calculate the capital account balance. Is the capital account balance a surplus or deficit?Question 3:Using the following data (billions of dollars) for a given year, calculate the balance on merchandise trade; balance on goods, services, and income; and the current account balance. Indicate whether these balances are deficits or surpluses.
An equation that the deficits/surpluses in the three sectors of the economy (private, Government and foreign sectors) is as follows: (S-I)=(G-T)+(X-M) During 2012 Ireland had an external Current Account surplus of about 4.3% of GDP. During the same year, the fiscal deficit was 2.7% of GDP. Using this equation, please calculate the balance in the private sector. Comment on this situation
i) Write down an equation to illustrate the links between the deficits/surpluses in the three sectors of the economy (private, Government and foreign sectors). (ii) During 2013 Ireland had an external Current Account surplus of about 4.4% of GDP. During the same year, the fiscal deficit was 2.3% of GDP. Using your equation, please calculate the balance in the private sector. (iii) Comment on this situation.
Balance of Payments (Billions of s) Current Accounts Canadian merchandise exports Canadian merchandise imports Merchandise trade balance Canadian service exports Canadian service imports Services balance Goods and services balance Net investment income from abroad Net unilateral transfers Current account balance +65 -96 +55 +10 Financial Accounts Change in Canadian-owned assets abroad Change in foreign-owned assets in Canadian Financial account balance -16 +45 Statistical discrepancy Trade balance 0 Suppose a Canadian citizen gives money to her nephew in Belgium. This would...
The situation of a net creditor nation running current account deficits is worrisome if: a. investment is high and rising. b. the net creditor status is smaller and the deficit is larger. c. C + G per capita is falling rapidly. d. GDP growth rate is very high. e. real C + G per capita is very small.
1. Why do governments prefer to avoid excessive current account surpluses? Or, why are growing domestic claims to foreign wealth ever a problem? 2. What are the main objectives of IMF? What is IMF conditionality? How does IMF promote flexibility in external balance adjustment?
An imbalance on a country’s current account implies: a. an equal but opposite imbalance on the financial account. b. a balance on the merchandise trade account. c. a balance on the financial account. d. an unequal exchange between the domestic country and all other foreign countries. e. an income inequality between the domestic country and all other foreign countries.