The table below shows Sophie’s financial details for 2019. Answer the following questions about her “balance of payments.”

a. What is Sophie’s “trade balance”? Explain.

b. What is Sophie’s overall current account balance?
Explain.

c. What is Sophie’s capital account balance? Explain.

d. There is one (and only one) piece of information shown above that is not needed to compute Sophie’s balance of payments. What is it? Explain why it is not needed.

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Sophie's Financial Details, 2019 Income from lifeguarding Income from lawn mowing Gift from grandparents Interest from bank deposits $2500 3500 1000 150 Expenditure on coffee and pastry 1000 Expenditure on tuition Purchase of mutual funds Bank balance at end of year Increase in bank balance during the year 3500 1200 3500 1450