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The following table gives information about transactions on the Balance of Payments accounts of Country X denoted in U.S.D ($) Transaction Value (1;) Exports 55%

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The following table gives information about transactions on the Balance of Payments accounts of Country X denoted in U.S.D ($) Transaction Value (1;) Exports 55% of trade balance Income received from holding foreign 400 assets Income paid to foreign residents from holding domestic assets 500 Net capital transfers 50 Trade balance 20% of the current account balance Increase in foreign holdings of domestic 300 assets Increase in domestic holdings of foreign 200 assets The current account balance in Country X is $ . (Round your answer to two decimal places.) The statistical discrepancy in the Balance of Payments accounts of Country X is % of the current account balance. (Round your answer to two decimal places.) Income paid to foreign residents from _ . 500 holding domestic assets Net capital transfers 50 Trade balance 20% of the current account balance Increase in foreign holdings of domestic 300 assets Increase in domestic holdings of foreign 200 assets The current account balance in Country X is $ . (Round your answer to two decimal places.) The statistical discrepancy in the Balance of Payments accounts of Country X is % of the current account balance. (Round your answer to two decimal places.) Mr. Black is a British investor looking into two one-year maturity bonds, a U.S. bond, and a U.K. bond. Mr. Black is unconcerned about the risk factors and other costs related to the bonds and is only looking to maximize his expected rate of return. The interest rate on the U.K. bond (1) is 5% and the interest rate on the U.S. bond (1") is 7%. Suppose that the exchange rate is 1.35 dollars per pound in the current year. If there are no arbitrage possibilities between the two bonds. what should be the value of the expected nominal exchange rate (E: 1)for the next year? er 1 = dollars per pound. (Round your answer to two decimal places.) Enter your answer in each of the answer boxes

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