uestion Three [20 marks] i Explain what the Balance of payment entails and why is it necessary to reviewa i) Describe the balance of payments identity and discuss its implications under the fixed has recorded continuous current account deficits and continuous capital account country's balance of payments data? (5 marks) and flexible exchange rate regimes. (5 marks) The US surpluses while Japan on the other hand has recorded continuous current account surpluses and capital account deficits, explain the causes of this scenario and the consequences thereof? (5 marks) Explain how a country's official settlement balance is derived and its significance in international trade (5 marks). u )