1. Interpret the credit and debit transactions and its net value of each item (for example, how can you interpret -$1,700 on reserve assets debit transaction? What does $16,250 on the net value of primary income indicate?)

2. Indicate the status of surplus or deficit for each item under each account in BOP, and find out what leads to such surplus or deficit for the account by doing some research with the below mentioned reference materials.

3.(below is the exchange rates of USD/AUD (AUD is the base currency) for that quarter of the year (June 2021), the previous quarter, and the following quarter) Read the trend of the value of Australian dollars against the USD. Using the information extracted from BOP, determine the Australias financial and economic health for the quarter 3-2021, and make inferences on the economic ramification and its impact on the exchange rate.

June 2021:

The average exchange rate for USD/AUD in June 2021 was around 1 USD = 1.33 AUD.

March 2021:

The average exchange rate for USD/AUD in March 2021 was approximately 1 USD = 1.29 AUD.

September 2021:

The average exchange rate for USD/AUD in September 2021 was approximately 1 USD = 1.36 AUD.

Table 1: Jun-2021 BOP \begin{tabular}{|l|r|r|l|} \hline \multicolumn{1}{|c|}{ Account } & \multicolumn{1}{c|}{ Credit } & \multicolumn{1}{c|}{ Debit } & \multicolumn{1}{c|}{ Net } \\ \hline Current Account & & & 25935 \\ \hline Goods and Services & $130,195 & $95,527 & 34,668 \\ \hline Goods & $115,505 & $82,713 & 32,792 \\ \hline Services & $14,690 & $12,814 & 1,876 \\ \hline Primary income & $15,788 & $22,810 & 7,022 \\ \hline Secondary income & $2,341 & $4,051 & 1,710 \\ \hline Capital and Financial Account & & & 21,871 \\ \hline Capital account & & & -261 \\ \hline Acquisitions/disposalsofnon-producedassets & $9 & $52 & -43 \\ \hline Capital transfers & $0 & $218 & -218 \\ \hline Financial account & & & 21,610 \\ \hline Direct investment & $4,046 & $1,706 & 5,752 \\ \hline Portfolio investment & $48,563 & $19,516 & 29,047 \\ \hline Financial derivatives & $51,709 & $49,238 & 2,471 \\ \hline Other investment & $6,693 & $5,154 & 1,539 \\ \hline Reserve assets & $754 & & 754 \\ \hline Net errors and omissions & & $4,064 & 4,064 \\ \hline Total BOP & $149,586 & $149,584 & 2 \\ \hline \end{tabular}