BALANCE OF PAYMENTS EXERCISE The country of Statsylvania has the following accounts related to other countries US$-Billions -55 22 Imports (goods) Exports (services) Income receipts on Stats investments abroad Net capital account Direct investment abroad Portfolio investment liabilities Other investments (net) Income Payments on foreign investments in Statsylvania Direct investment in Statsylvania Portfolio investment assets Reserves, etc. Exports (goods) Current transfers Imports (services) 49 -1 -67 41 -12 -13 33 -75 3 105 -5 -66 1. Shouldn't the current account and financial account balance? 2. If they do not, how does international accounting fix the problem? BALANCE OF PAYMENTS EXERCISE The country of Statsylvania has the following accounts related to other countries US$-Billions -55 22 Imports (goods) Exports (services) Income receipts on Stats investments abroad Net capital account Direct investment abroad Portfolio investment liabilities Other investments (net) Income Payments on foreign investments in Statsylvania Direct investment in Statsylvania Portfolio investment assets Reserves, etc. Exports (goods) Current transfers Imports (services) 49 -1 -67 41 -12 -13 33 -75 3 105 -5 -66 1. Shouldn't the current account and financial account balance? 2. If they do not, how does international accounting fix the