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Value in $B US purchases of Danish products $420 Danish domestic savings $60 Danish tourism to...

Value in $B
US purchases of Danish products $420
Danish domestic savings $60
Danish tourism to UK $72
Danish contribution to World Food Programme $2
Danish govt healthcare program $285
Danish purchases of German products $300
Danish contribution to the International AIDS Society $3
Chinese purchases of German product $75
Danish Property Taxes $240
Danish investment in Copenhagen $80
UK tourism to Denmark $92

What is the Financial Account balance for Denmark based on the above information?

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Answer #1

Financial account is the component of the balance of payment which consider assets and liability in regard to financial assets.

Here, domestic saving is part of GDP, tourism is in current account, Aids is part of current account. Healthcare program is part of GDP. Import or export is part of current account, Investment in its own capital is part of GDP.

Given this and we know that

financial account balance = -current account balance = -(420-72-2-300-3+92) = -$135 B (Ans)

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