Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The table below shows Arcadia's balance-of-payments accounts in millions of dollars. Receipts Payments Balance Current Account Merchandise Trade 147.2 57.2 Trade in Services 76.3 88.7

The table below shows Arcadia's balance-of-payments accounts in millions of dollars.

Receipts Payments Balance
Current Account
Merchandise Trade 147.2 57.2
Trade in Services 76.3 88.7
Investment Income 44.2 38.7
Employee Compensation 6.2 9.8
Transfers 12.3 25.6
Capital and Financial Accounts
Capital Account 6.9 7.5
Financial Account
Direct Investment 36.4 47.7
Portfolio Investment 27.2 20.2
Other Financial Investments 16.6 10.3

a. Fill in the above table. Enter your responses rounded to 1 decimal place. For balance-of-payments deficits and surpluses do not enter positive or minus signs. For the balance of trade and changes in official reserves do enter a minus (-) sign in front of any negative value responses.

b. There is a (Click to select) deficit surplus of $ million on Arcadia's current account.

There is a (Click to select) deficit surplus of $ million on Arcadia's capital and financial accounts.

c. If the statistical discrepancy in Arcadia's balance of payments accounts is $2.3 million, Arcadia is running a balance of payments (Click to select) deficit surplus of $ million.

d. The change in official reserves that appears in Arcadia's balance of payments accounts is $ million, which shows that Arcadia's central bank (Click to select) bought sold Arcadia's own currency and (Click to select) bought sold foreign currency in order to keep (Click to select) down up the value of Arcadia's currency.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: James D. Stice, Earl K. Stice, Fred Skousen

17th Edition

032459237X, 978-0324592375

More Books

Students also viewed these Accounting questions