($ billions) + 440 + 280 + 40 + 120 – 490 – 360 – 60 – 70 – 11 – 26 + 88 – 14 +
ID: 1226716 • Letter: #
Question
($ billions)
+ 440
+ 280
+ 40
+ 120
– 490
– 360
– 60
– 70
– 11
– 26
+ 88
– 14
+ 13
0
Refer to Exhibit 19-1. The current account balance equals __________ billions of dollars.Question 3 options:
-101
+63
-61
none of the above
Components of the Balance of Payments($ billions)
Exports of goods and services+ 440
Merchandise exports (including military sales)+ 280
Exports of services+ 40
Income from U.S. assets abroad+ 120
Imports of goods and services– 490
Merchandise imports (including military purchases)– 360
Imports of services– 60
Income from foreign assets in U.S.– 70
Net unilateral transfers abroad– 11
Outflow of U.S. capital– 26
Inflow of foreign capital+ 88
Increase in U.S. official reserve assets– 14
Increase in foreign official assets in U.S.+ 13
Statistical discrepancy0
Explanation / Answer
3. The current account balance equals none of the above.
This is because current account balance = Net export + Net unilateral transfers abroad + net income abroad
current account balance = (440 -490) + (- 11) + (120 - 70) = -11.
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