Question
The nation of Pecunia had a current account deficit of $4 billion and a nonreserve financial account surplus of $2.4 billion in 2010. The capital
The nation of Pecunia had a current account deficit of $4 billion and a nonreserve financial account surplus of $2.4 billion in 2010. The capital account and statistical discrepancy can be ignored.
Suppose foreign central banks had purchased $1 billion of Percunian assets in 2010.
Fill in the blanks below. Indicate the sign (+ or -) where applicable.
(1) Foreign coutries' net official financial inflow (including the actions of all central banks, domestic and foreign) = _________
(2)Current account balance = _________
Financial account balance: (I) non-reserve part = _________
(ii)reserve part: (a) change in domestic central bank's holding of foreign assets = _________
(b) change in foreign central banks' holding of domestic assets = _________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started