Assume that: (1) a country has a current-account surplus of $10,000; (2) its financial account has a

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Assume that: (1) a country has a current-account surplus of $10,000; (2) its financial account has a deficit of $15,000; and (3) its other two accounts – the capital account and net errors and omissions – are negligible. What is the balance of the country’s reserve account? How can the country eliminate the $5,000 imbalance on its balance of payments?

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