Balance of Payments

Trade between country A and country B. The total export of country A to country B this year is $2.1B and the total import is $2.66B. Country A also has a total income from their citizens working in country B of $738M, while country B citizens also works in country A and has a total income of $518M, this year. Country A also bought properties and market stocks in country B worth $6.28B and country B bought properties and stocks in country A worth $3.80B

1. What is the current account of country A? ________________

2. What is the current account of country B? ________________

3. What is the financial account of country A? _______________

4. What is the financial account of country B? _______________

5. Which country has a deficit on current account? ___________

6. Which country has a surplus in financial account? ___________

7. Was there a balance of payments? (Y/N) _________________

8-10. Why do you think learning balance of payment is important in macroeconomics? What is its purpose? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________