In 2010 the country of Westview has a current account deficit of $1 billion and a private (nonreserve) financial account surplus of $1250 million. Westview's capital account and statistical discrepancy are zero. We also know that Westview factors located in foreign countries earn $600 million. Westview has a trade deficit of $900 million. Assume Westview neither gives nor receives unilateral transfers. Westview's GDP is $10 billion, and that there is no change in the prices of its assets or liabilities or exchange rate. Use the various accounting identities you know to solve for various information about Westview's balance of payments:

a. Calculate the official settlements balance. Based on this number, what happened to the central bank's (foreign) reserves?

b. Calculate NFIA.

c. How much income did foreign factors of production earn in Westview during 2010?

d. Using the identity BOP = CA + FA + KA, show that BOP = 0.

a. What happened to Westview's net foreign assets during 2010? Did it acquire or lose foreign assets during the year?

f. Calculate Westview's GNE, GNI, and GNDI.