Week 6 Chapter 9 (1.1 Use the following information to answer the questions below. Assume that the capital account is equal to 1,000. Exports of goods and services 2,000 ' Primary income received 500 ' Secondary income received 800 Imports of goods and services 2,300 ' Primary income payments 580 Secondary income payments 250 ' Net acquisition of financial assets 800 Net incurrence of liabilities 900 ' Net change in financial derivatives 60 a. Is there a surplus or a deficit in the trade balance? By how much ? b. What is the current account balance? c. Does the financial account balance equal the current plus capital account balance? d. What is the statistical discrepancy? Q.2 Look at each of the following cases from the point of View of the balance of payments for the United States. Determine the subcategory of the current account or financial account that each transaction would be classified in and state whether it would enter as a credit or debit. a. A migrant worker in California receives $100 from his relatives in Mexico. b. An Argentinian investment fund uses its deposits to buy gold in America. c. A Chinese firm in Dallas buys computers from a subsidiary in Beijing. Page | 7