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Balance of Payments: the following presents the balance of payments for a hypothetical country in 2017 (billions of U.S. dollars). Goods exports 1153 Goods imports 1967 Service exports 493 Service imports 378 Primary income receipts 818 Primary income payments 736 Net secondary income - 50 Direct investment assets 333 Direct investment liabilities 238 Portfolio investment assets 295 Portfolio investment liabilities 1145 Based on the above information, answer the following questions. a. What was the current account balance? Was it a deficit or a surplus? b. What was the financial account balance? Does the balance imply net capital inflow or outflow? c. Explain the relationship between current and financial account balances based on your answer to a and b above.

Balance of Payments: the following presents the balance of payments for a hypothetical country in 2017 (billions of U.S. dollars). Good exports 1153 Good imports 1967 Service exports 493 Service imports 378 Primary income receipts 818 Primary income payments 736 Net secondary income -50 Direct investment assets 333 Direct investment liabilities 238 Portfolio investment assets 295 Portfolio investment liabilities 1145 Based on the above information, answer the following questions. a. What was the current account balance? Was it a deficit or a surplus? b. What was the financial account balance? Does the balance imply net capital inflow or outflow? c. Explain the relationship between current and financial account balances based on your answer to a and b above