2. Use the 2018 BOP Account data for the US given below and answer the questions that follows. Show every step of your Computations Table 1. U.S. International Transactions 2018 Millions of dollars] Line 2018 Line 3.735,6841 Current account 1 Exports of goods and services and income receipts (credits) 2 Exports of goods and services 3 Goods 4 General merchandise 5 Foods, feeds, and beverages 6 Industrial supplies and materials 7 Capital goods except automotive 8 Automotive vehicles, parts, and engines 9 Consumer goods except food and automotive 10 Other general merchandise II Net exports of goods under merchanting 12 Nonmonetary gold 13 Services 14 Maintenance and repair services n.i.c. 15 Transport 16 Travel (for all purposes including education) 17 Insurance services 18 Financial services 19 Charges for the use of intellectual property nie. 20 Telecommunications, computer, and information services 21 Other business services 22 Government goods and services n.i.c. 23 Primary income receipts 24 Investment income 25 Direct investment income 26 Portfolio investment income 27 Other investment income 28 Reserve asset income 29 Compensation of employees 30 Secondary income (current transfer) receipts 31 Imports of goods and services and income payments (debits) 32 Imports of goods and services 33 Goods 34 General merchandise 35 Foods, feeds, and beverages 36 Industrial supplies and materials 37 Capital goods except automotive 38 Automotive vehicles, parts, and engines 39 Consumer goods except food and automotive 40 Other general merchandise 41 Noomonetary gold 42 Services 43 Maintenance and repair services nie. 2,501,3102 1.674,3303 1.652.1134 133.176 5 534.649 6 563.1567 158.8398 205,471 9 56,821 10 270 11 21.947 12 826,980 13 30,968 14 92,852 15 214.680 16 17.466 17 112.015 18 128,748 19 43,196 20 165,821 21 21.235 22 1.084,183 23 1,077,51524 574,464 25 411,171 26 91.247 27 632 28 6,668 29 150,191 30 4.226,662 31 3.128,989 32 2,561,66733 2.551.105 34 148,364 35 383 344 36 695,939 37 373.123 38 649,096 39 101.237 40 10.562 41 567,322 42 8718 43 44 Transport 45 Travel (for all purposes including education) 46 Insurance services 47 Financial services 48 Charges for the use of intellectual property nie. 49 Telecommunications, computer, and information services 50 Other business services 51 Government goods and services nie. 52 Primary income payments 53 Investment income 54 Direct investment income 55 Portfolio investment income 56 Other investment income 57 Compensation of employees 58 Secondary income (current transfer) payments Capital account 59 Capital transfer receipts and other credits 60 Capital transfer payments and other debits 108,202 44 144.463 45 42.485 46 31.298 56,117 48 41.190 49 111.874 50 22.975 SI 830,198 52 810,618 53 244,197 54 471,795 55 19.580 57 267,475 58 3.247 59 1260 Table 1. U.S. International Transactions continues [Millions of dollars Line 2018 Line Financial account 61 Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (-) 310,827 61 62 Direct investment assets -78,457 62 63 Equity -151,634 63 64 Debt instruments 73.157 64 65 Portfolio Investment assets 334,033 65 66 Equity and investment fund shares 194,087 66 67 Debt securities 139.945 67 68 Short term 16.341 68 69 Long term 123,604 69 70 Other investment assets 50.262 70 71 Currency and deposits 71.792 71 72 Loans -22.423 72 73 Insurance technical reserves 73 74 Trade credit and advances 893 74 75 Reserve assets 4.989 75 76 Monetary gold 0 76 77 Special drawing rights 156 77 78 Reserve position in the International Monetary Fund 7 79 Other reserve assets 10 79 80 Currency and deposits 80 81 Securities 10 81 82 Financial derivatives 0 83 Other claims 0 83 84 Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities/financial inflow (+)) 735.583 84 85 Direct investment liabilities 258_392 88 86 Equity 357.164 86 87 Debt instruments -95,773 87 88 Portfolio investment liabilities 315,676 88 89 Equity and investment fund shares 142.396 89 90 Debt securities 173.280 90 91 Short term 28,099 92 Long term 145,181 92 93 Other investment liabilities 161,515 93 94 Currency and deposits 32.320 94 95 Loans 114,066 95 96 Insurance technical reserves ma 96 97 Trade credit and advances 15,129 97 98 Special drawing rights allocations 0 98 99 Financial derivatives other than reserves, net transactions -20,721 99 Statistical discrepancy 100 Statistical discrepancy 42.266 100 a) Compute US Current Account Balance for the year 2018. Explain whether the balance indicated a deficit or surplus for the year 2018 b) Compute the Capital Account Balance for US in the year 2018. Did the account reflect a deficit or a surplus? c) Compute US Financial Account Balance for the year 2018. Was the account in deficit or surplus? d) Compute Statistical Discrepancy for the 2018 BOP Account. Does your answer match with the number shown on the table? (Show how you arrive at your answer for Statistical Discrepancy). 2. Use the 2018 BOP Account data for the US given below and answer the questions that follows. Show every step of your Computations Table 1. U.S. International Transactions 2018 Millions of dollars] Line 2018 Line 3.735,6841 Current account 1 Exports of goods and services and income receipts (credits) 2 Exports of goods and services 3 Goods 4 General merchandise 5 Foods, feeds, and beverages 6 Industrial supplies and materials 7 Capital goods except automotive 8 Automotive vehicles, parts, and engines 9 Consumer goods except food and automotive 10 Other general merchandise II Net exports of goods under merchanting 12 Nonmonetary gold 13 Services 14 Maintenance and repair services n.i.c. 15 Transport 16 Travel (for all purposes including education) 17 Insurance services 18 Financial services 19 Charges for the use of intellectual property nie. 20 Telecommunications, computer, and information services 21 Other business services 22 Government goods and services n.i.c. 23 Primary income receipts 24 Investment income 25 Direct investment income 26 Portfolio investment income 27 Other investment income 28 Reserve asset income 29 Compensation of employees 30 Secondary income (current transfer) receipts 31 Imports of goods and services and income payments (debits) 32 Imports of goods and services 33 Goods 34 General merchandise 35 Foods, feeds, and beverages 36 Industrial supplies and materials 37 Capital goods except automotive 38 Automotive vehicles, parts, and engines 39 Consumer goods except food and automotive 40 Other general merchandise 41 Noomonetary gold 42 Services 43 Maintenance and repair services nie. 2,501,3102 1.674,3303 1.652.1134 133.176 5 534.649 6 563.1567 158.8398 205,471 9 56,821 10 270 11 21.947 12 826,980 13 30,968 14 92,852 15 214.680 16 17.466 17 112.015 18 128,748 19 43,196 20 165,821 21 21.235 22 1.084,183 23 1,077,51524 574,464 25 411,171 26 91.247 27 632 28 6,668 29 150,191 30 4.226,662 31 3.128,989 32 2,561,66733 2.551.105 34 148,364 35 383 344 36 695,939 37 373.123 38 649,096 39 101.237 40 10.562 41 567,322 42 8718 43 44 Transport 45 Travel (for all purposes including education) 46 Insurance services 47 Financial services 48 Charges for the use of intellectual property nie. 49 Telecommunications, computer, and information services 50 Other business services 51 Government goods and services nie. 52 Primary income payments 53 Investment income 54 Direct investment income 55 Portfolio investment income 56 Other investment income 57 Compensation of employees 58 Secondary income (current transfer) payments Capital account 59 Capital transfer receipts and other credits 60 Capital transfer payments and other debits 108,202 44 144.463 45 42.485 46 31.298 56,117 48 41.190 49 111.874 50 22.975 SI 830,198 52 810,618 53 244,197 54 471,795 55 19.580 57 267,475 58 3.247 59 1260 Table 1. U.S. International Transactions continues [Millions of dollars Line 2018 Line Financial account 61 Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (-) 310,827 61 62 Direct investment assets -78,457 62 63 Equity -151,634 63 64 Debt instruments 73.157 64 65 Portfolio Investment assets 334,033 65 66 Equity and investment fund shares 194,087 66 67 Debt securities 139.945 67 68 Short term 16.341 68 69 Long term 123,604 69 70 Other investment assets 50.262 70 71 Currency and deposits 71.792 71 72 Loans -22.423 72 73 Insurance technical reserves 73 74 Trade credit and advances 893 74 75 Reserve assets 4.989 75 76 Monetary gold 0 76 77 Special drawing rights 156 77 78 Reserve position in the International Monetary Fund 7 79 Other reserve assets 10 79 80 Currency and deposits 80 81 Securities 10 81 82 Financial derivatives 0 83 Other claims 0 83 84 Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities/financial inflow (+)) 735.583 84 85 Direct investment liabilities 258_392 88 86 Equity 357.164 86 87 Debt instruments -95,773 87 88 Portfolio investment liabilities 315,676 88 89 Equity and investment fund shares 142.396 89 90 Debt securities 173.280 90 91 Short term 28,099 92 Long term 145,181 92 93 Other investment liabilities 161,515 93 94 Currency and deposits 32.320 94 95 Loans 114,066 95 96 Insurance technical reserves ma 96 97 Trade credit and advances 15,129 97 98 Special drawing rights allocations 0 98 99 Financial derivatives other than reserves, net transactions -20,721 99 Statistical discrepancy 100 Statistical discrepancy 42.266 100 a) Compute US Current Account Balance for the year 2018. Explain whether the balance indicated a deficit or surplus for the year 2018 b) Compute the Capital Account Balance for US in the year 2018. Did the account reflect a deficit or a surplus? c) Compute US Financial Account Balance for the year 2018. Was the account in deficit or surplus? d) Compute Statistical Discrepancy for the 2018 BOP Account. Does your answer match with the number shown on the table? (Show how you arrive at your answer for Statistical Discrepancy)