1-) Why balance of payments is always balanced? 2-) Subcomponents of BoP? 3-) Discuss statistical discrepancy subcomponent of BoP. 4-) Which subcomponents of BoP are more related to the exchange rate and why? 5-) Discuss how domestic interest rates relate to BoP and how. 6-) foreign direct investment vs portfolio investment (a.k.a. hot money). 7-) Discuss China's Twin Surpluses and why this is unsual