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I need help here. This was from the notes in a class. I saw you have an example of a similar problem. But the answer
I need help here. This was from the notes in a class. I saw you have an example of a similar problem. But the answer is very different . I need guidance to understand what I have here and how the prof went about the answer .
Service exports $346 Service imports $354 Merchandise exports $480 Merchandise imports $348 Income flows, net $153 Gifts to foreigners -outflow $ is leaving so -NEG $142 Increase in the country's holding of foreign assets, net $352 (Excluding official reserves assets) outflow Your country is investing abroad (outflow). Increase in foreign holdings of the country's assets, net $252 (Excluding official reserves assets) inflow Foreigners are investing in your country (inflow). Statistical discrepancy, net credit $154 Calculate the official settlements balance and the current account balance. Is the country increasing or decreasing its net holdings of official reserve assets? Why? 1st calculate 30. Net Export = Export - Imports = (480 + 346)-(348+354)=$124 million CA=NX+NI+NUT = 124 + 153 + (-142)=$135 million and calculate OSB=CA + FA FA can be found in inflow FA= 252-352=$ -100 million FA=-100 Official Statistical Balance OSB=CA + FA OSB =135 + (-100) = $35 million CA + FA +OR + SD =0 35 +OR + 154=0 OR = -$189 Million ->189 Million-> flows out of country to purchase international reserves (euro, points, yen) Holdings of reserves /^Step by Step Solution
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