Question
Refer to the following BOP table of US in 2014 and answer the questions. Current account Exports of goods and services and income receipts (credits)
Refer to the following BOP table of US in 2014 and answer the questions.
Current account | |
Exports of goods and services and income receipts (credits) | |
Goods | 383936 |
Services | 188332 |
Investment income receipts | 194716 |
Unilateral transfers receipts | 32200 |
Imports of goods and services and income payments (debits) | |
Goods | 577452 |
Services | 121329 |
Investment income payments | 146365 |
Unilateral transfer payments | 68587 |
Capital account | 0 |
Financial account |
|
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) |
|
Direct investment assets | 86576 |
Portfolio investment assets | 233068 |
Other investment assets | 42077 |
Official reserve assets | -4159 |
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) |
|
Direct investment liabilities | 194067 |
Portfolio investment liabilities | 102922 |
Other investment liabilities | 51015 |
Official reserve assets | ??? |
Financial derivatives other than reserves, net transactions | -40199 |
1. Calculate trade balance and current account.
2. Calculates the balance of payments (or official settlements balance). What should be the value of ??? in the table to satisfy the BOP identity condition?
3. Explain the relationship between current account, non-reserve financial account and reserve account using the numbers from the table. How did the USs central banks foreign reserves change in 2014?
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