Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Current, financial, and capital accounts Consider the following table showing hypothetical balance-of-payments data for the United States. Complete the following table by selecting the

image text in transcribed
image text in transcribed
image text in transcribed
1. Current, financial, and capital accounts Consider the following table showing hypothetical balance-of-payments data for the United States. Complete the following table by selecting the correct value for each missing ener, Aplia Homework: international Finance Complete the following table by selecting the correct value for each missing entry. Suppose an Amencan business owner purchases chocolates from Beigium in order to soil them in her shops. This would be entered as a item under the section of the U.S, current account. Suppose an American business owner purchases chocolates from Belglum in order to sell them in her shops, This would be entered as a Item under the section of the U.S. current account. According to the table, the United States is running a trade The current account balance suggests that U.S. current account transactions (exports and imports of goods and services, as well as inflow and outhew of investment income and transfers) created outpayments of foreign currencles from the United States that were the inpayments of foreign currencies to the United States; Any surplus or deficit in one account must be offset by deficits or surpluses in other balance-of-payments accounts, Because the current account is in the excess of U.S. currency held by foreigners must either be loaned to Americans or used to buy American stocks or bonds All of these transactions are then recorded in the account. Since any imbalance in one account automatically leads to an equal, but oppos te, imbalance in the other, the balance of payments is always

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial & Managerial Accounting

Authors: Carl S. Warren

10th Edition

0324663811, 9780324663815

More Books

Students also viewed these Accounting questions

Question

true or false.

Answered: 1 week ago

Question

1 What is meant by systematic training?

Answered: 1 week ago