1. What is recorded in the U.S. current account? In its capital account? In its official settlements account?

2. If its official settlements account equals zero, what will a country's capital account equal if it has a $350 billion current account deficit?

Item (billions of dollars) U.S. investment abroad 400 Exports of goods and services 1,000 Net transfers 0 Change in official reserves 10 Net interest O Foreign investment in the United States 800