(BEA) of US Department of Commerce at http://www.bea.gov/iTable/iTable.cfm?reqid=62&step=1#reqid=62&step=2&isuri=1&62 10=1. Choose International Transactions, Table 1.1. You will then choose to modify the selection for all years, annual and all lines, then download the data in excel format and save it to your desktop. You will be working with this worksheet for questions 1-4. Your data manipulation and its representation must be done with Excel, and the text of your report must be in ms-word format (you can copy and paste your excel graphs and tables into the word document, NO NEED to report the raw data that are used for the graphs and tables). 1. (5 points) With the data reported for Export of Goods and Services (line #2), Import of Goods and Services (line #10), and Balance on Goods and Services (line #31), draw a line chart showing imports, exports and Trade Balance (on goods and services) of the US between 1960-2015. This is Graph 1. Save it on a new Excel worksheet, provide a title for your chart and make sure everything is labeled appropriately. What is the pattern of changes in the goods and services trade balance during this period? 2. (5 points) In 2015, US Primary income receipts on its foreign assets were $823 billion (line #5), while its counterpart, the countrys Primary income payments to foreigners were $585 billion (line#13). Yet we saw that the US is a substantial net debtor to foreigners as can be seen from Graph 1, as well as from the International Investment Position of the US. How then is it possible that the US received more foreign asset income than it paid out? 3. (5 points) Calculate the Financial Account Balance of BOP for every year between 1960 and 2015 (include Financial derivatives and Statistical discrepancy) and draw a line of this balance together with the CA balance. This is Graph 2. Provide a title for your chart. 4. (5 points) Find the IMFs World Economic Outlook (hint: Google World Economic Outlook Databases or just click on http://www.imf.org/external/pubs/ft/weo/2014/01/weodata/index.aspx Download the entire dataset (by countries) (for April 2014 Edition) and look for the data on current account in U.S. dollars, and as a percentage of GDP for all countries. Which 10 countries had the largest deficits and surpluses in 2013 (both in US dollars and as a % of GDP)? To do this, download the data as an excel file and use the sort function under the data toolbar to rank them according to CA deficit/surplus, and report the largest 10 countries with deficits and surpluses in both dollar figures, and as a percent of their GDPs. You must produce 4 total rankings. Two for deficits and two for surpluses. 5. (5 points) Saving and Investment throughout the world: Retrieve the 2014 World Economic Outlook (WEO) from the Web site of the International Monetary Fund (http://www.imf.org/external/pubs/ft/weo/2014/01/pdf/text.pdf) (download the full text). In the Statistical Appendix, find Table A15 titled Summary of Sources and Uses of World Savings (page 203), which lists saving and investment (as a percent of GDP) around the world. Use the data for 2013 to answer parts (a) and (b) below: a. Does world saving equal investment (ignoring small statistical error)? Explain. b. How does the US saving compare to US investment? How is the US able to finance its investment? How about the Euro area countries as a whole? 6. (5 points) Assume that the US government has applied for a five-year loan to a major international bank and you are the chief financial analyst in charge of country risk and credit analysis. Given the information available from the US BOP accounts (see questions 1-3), would you recommend a loan to the US government? Why, why not? (200-300 words).