4. The following transactions (expressed in € billions)

take place during a year. Calculate the Eurozone merchandise-trade, current-account, financial-account, and official reserves balances.

(a) The Eurozone exports €300 of goods and receives payment in the form of foreign demand deposits abroad.

(b) The Eurozone imports €225 of goods and pays for them by drawing down its foreign demand deposits.

(c) The Eurozone pays €15 to foreigners in dividends drawn on Eurozone deposits.

(d) Tourists from the Eurozone spend €30 overseas using traveler’s checks drawn on Eurozone banks.

(e) Eurozone residents buy foreign stocks with €60, using foreign deposits held abroad.

(

f) Eurozone governments sell €45 in gold for foreign deposits abroad.

(g) In a currency support operation, the governments of the Eurozone use their foreign deposits to purchase €8 from private foreigners in the Eurozone.