From Cergage Homework (Ch 10) Average: /5 Attempts: 6. Looking at credits and de

Question

From Cergage Homework (Ch 10) Average: /5 Attempts: 6. Looking at credits and debits The following graph represents the value of credits and debits in four balance-of-payments accounts in the economy of Moraha. Blue bars (the right-hand bar in each category) represent debits, and orange bars represent credits. Use the graph to help you answer the following questions PRICE (BAlions of dellars 100 #01 80 70 60 50 40 30 20 Merch Services IncomeUnilateral Translers You can see from the graph that the total value of Moraha's debits is greater than the value of its credits, and therefore, there is more money flowing out of Moraha to foreign countries than there is flowing into Moraha This means that Moraha has a deficit in thecurrent account Complete the following table based on the credits and debits presented on the graph. If you are indicating a deflicit, be sure to use a negative sign. Credit or Debit (Billions of dollars) Term Equals the Value of Current account balance Sum of debits-Sum of credits Sum of credits-Sum of debits Merchandise debits-Merchandise credits Merchandise credits-Merchandise debits Does not contain any of the listed accounts Merch, and service debits - Merch. and service credits Balance of trade Merch, and service credits- Merch and service debits

Explanation / Answer

Ans All choices given in blanks are 100% right

Now last question

Sum of credits-debits(it will include all four types because all are included in current account) =90-130=-40

Trade=merch and device credits-merc and service debts. Any two are not part of trade account=65-100=35

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