Question
Use the following information to answer the questions below. Assume that the capital account is equal to zero. Net unilateral transfers 50 Exports of goods
Use the following information to answer the questions below. Assume that the capital account is equal to zero. Net unilateral transfers 50 Exports of goods and services 500 Net increase in United States governments nonreserve foreign assets 30 Net increase in foreign ownership of United States based nonreserve assets 400 Net increase in U.S. private assets abroad 250 Invest income received in the U.S. 200 Net increase in U.S. ownership of official reserve assets 20 Imports of goods and services 600 Net increase in foreign ownership of U.S.-based reserve assets 100 Investment income paid abroad by the U.S. 300 (a) What is the current account balance? (show the 3 components) (b) What is the capital account balance (Financial + Capital)? (c) Does the capital account equal the current account? (d) What is the statistical discrepancy?
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