8. Is it possible for a country to have a current account deficit at the same time it has a surplus in its balance of payments? Explain your answer, using hypothetical figures for the current and nonreserve financial accounts. Be sure to discuss the possible implications for official international reserve flows.

e. A California winegrower contributes a case of cabernet sauvignon for a London wine tasting.

f. A U.S.-owned factory in Britain uses local earnings to buy additional machinery.