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.
D)an unequal exchange between the domestic country and all other foreign countries
A current account deficit means that the country imports more goods and capital that it's exports of goods which in turn leads unequal exchange of goods and capital leading to a deficit
An imbalance on a country’s current account implies: a. an equal but opposite imbalance on the...
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...
A current account deficit implies that the country is a net borrower with the rest of the world. the country is running a net capital account surplus. domestic investment in foreign assets is at very low levels. All of the above. explain pls
If the current account balance is negative and the capital account balance is zero, _________. a. the financial account balance must be negative b. the financial account balance must be twice the current account balance c. there is net inflow of foreign investment d. there is net outflow of foreign investment e. capital inflows must be less than capital outflows Initially the exchange rate between the Australian dollar and yen is ¥80=A$1. Suppose that the exchange rate changes to ¥75...
apter 6 Name When a firm in another country outsources a function to a US company. Domestic price of a foreign currency. Exchange rates determined by supply and demand. That part of a country's balance of payments that includes trade, income from investments, and foreign aid. That part of a country's balance of payments that includes investments made in other countries and foreign investments in the domestic country. KEY TERMS ILI ILIIVI D d 1. Having an absolute advantage 2....
Which of the following statements regarding the balance of payments account are correct, ceteris paribus? Select all correct answers: a) An increase in dividends from foreign portfolio investments would lead to an increase in the current account. b) A current account surplus will always lead to an increase in the home country’s official foreign exchange reserves. c) An increase in the trade deficit would lead to an increase in the current account. d) A country with a current account deficit...
Question 13. After 1973, the world never seemed to be able to return to the Bretton Woods system of fixed exchange rates. One reason often cited for this is that after 1973, OPEC sharply raised the dollar price of oil sold on world markets. For countries other than the US, the abandonment of fixed exchange rates turned into a blessing, in light of the increase in the world price of oil. This is because: A. With higher oil prices, these countries’...
Consider two fictional economies, one called the domestic country and the other the foreign country. Given the transactions listed below, construct the balance of payments for each country. If necessary, include a statistical discrepancy. a. The domestic country purchased $120 in oil from the foreign country b. Foreign tourists spent $23 on domestic ski slopes. c. Foreign investors were paid $12 in dividends from their holdings of domestic equities d. Domestic residents gave $20 to foreign charities e. Domestic businesses...
Which of the following is a key component that determines a country’s primary income within the country’s current account? a. tax rates b. gifts c. direct foreign investment d. international trade e. none of the options listed
capital account-current
account financial account
-japanese auto
-chinese government
-honduran worker
-french company
-u.k bonds
-italian contrator
The Balance-of-Payments (BOP) Explained Intemational trade invalves the sale other countries (imports) goods and services to residents in other countries (exports) and the purchasse of goods and services from residents Country's balance-of- payments accounts keep track of the payments to, and receipts from, other countries for a particular time period. These include payments to forelgners for imports of goods and services, and receipts...
Can
anyone please help me with this question?? Here are the
abbreviations...
CA: Current Account
KA: Capital Account
NUT: Net Unilateral Transfers
TB: Trade Balance
C: Consumption(personal consumption expenditures)
G: Government Consumption(government expenditures)
GNE: Gross National Expenditure
Question 3) Use the following data on the hypothetical economy to answer the following questions: CA: $5000 million C: $3000 million KA: $100 million G: $1000 million NUT: $50 million GNE: $7000 million TB: $800 million نه ف What is the financial account...