Exercise 1 A country performed, in a given year, the following transactions abroad. All payments were made in dollars.

1. Exports paid in cash: US$500 million 2. Imports paid in cash: US$400 million 3. Freight paid in cash abroad: US$200 million 4. Foreign investment in equipment: US$50 million 5. Donations received as merchandise: US$10 million 6. Loans received from foreign banks: US$200 million 7. Loan amortizations: US$50 million 8. Interest paid abroad: US$60 million Present the balance of payments, highlighting:

a. The trade surplus or deficit

b. The financial account balance

c. The net income sent abroad

d. The variation in reserve assets for the period