Question

How do you calculate NFA (net foreign assets) given the current account balance

How do you calculate NFA (net foreign assets) given the current account balance

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Current Account Balance (CA) =change in Net foreign assets

if a country runs a $700 billion current account deficit, it has to borrow exactly $700 billion from abroad to finance the deficit and therefore, the country's net foreign asset position falls by $700 billion.

Add a comment
Know the answer?
Add Answer to:
How do you calculate NFA (net foreign assets) given the current account balance
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Which one of the following is not Net Exports ? A. the current account balance. B....

    Which one of the following is not Net Exports ? A. the current account balance. B. the sum of balance of trade and the balance of services. C. a component of aggregate supply. D. the net foreign investment.

  • Using the table below, calculate the following: • current account balance • the capital and financial...

    Using the table below, calculate the following: • current account balance • the capital and financial account balance • the official settlements account balance Item Imports of goods and services Foreign investment in Nordland Exports of goods and services Nordland's investment abroad Net interest income Net transfers Statistical discrepancy Billions of dollars 1,200 1,000 1,500 600 7 - 10 - 20

  • In the table given below, Singapore’s balance of payments (BoP) comprises: (a) Current account of goods,...

    In the table given below, Singapore’s balance of payments (BoP) comprises: (a) Current account of goods, services & factor income (primary & secondary income balance) (b) Capital & Financial account as DFI & Portfolio Investment (c) Errors & Omissions (d) A+B+C = BoP reflected in E (e) Reserve Assets (f) Official reserves (stock as accumulated over the years) Explain the balance of payments position of Singapore and why traditionally, its trade in services rather than trade in goods dominated its...

  • What is the effect of a dollar appreciation against all foreign currencies? The current account balance...

    What is the effect of a dollar appreciation against all foreign currencies? The current account balance decreases, and the trade balance increases. The current account balance and the trade balance are both unaffected. The current account balance and the trade balance both decrease. The current account balance and the trade balance both increase. The current account balance increases, and the trade balance decreases.

  • Can anyone please help me with this question?? Here are the abbreviations... CA: Current Account KA:...

    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...

  • Consider two fictional economies, one called the domestic country and the other the foreign country. Given...

    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...

  • Based on the following information, what is the balance on the current account? Exports of goods...

    Based on the following information, what is the balance on the current account? Exports of goods and services = $5 billion Imports of goods and services= $3 billion Net income on investments = -$2 billion Net transfers = -$2 billion Increase in foreign holdings of assets in the United States = $4 billion Increase in U.S. holdings of assets in foreign countries -$1 billion $3 billion -$2 billion $1 billion $4 billion

  • If the current account balance is negative and the capital account balance is zero, _________. a....

    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...

  • building a balance sheet,ABCO,onc.had current assets of 15,200, net fixed assets $4,999, current liabilities of $6,600,...

    building a balance sheet,ABCO,onc.had current assets of 15,200, net fixed assets $4,999, current liabilities of $6,600, and long-term debt of $10,000. what is the vaue of the shareholders equity ? how much is net working capital? show your balance sheet

  • A current account deficit implies that the country is a net borrower with the rest of...

    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

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT