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Your company has a factory in Arcadia. One day, you decide to look over Arcadia's balance of payments accounts 2015, US dollars Current account balance
Your company has a factory in Arcadia. One day, you decide to look over Arcadia's balance of payments accounts 2015, US dollars Current account balance -100 bn Financial account balance 200bn Foreign direct investment (FDI) 7sbn Official reserve transactions ___________ Other 15 bn Capital account USD 0 Statistical discrepancy USD - 100bn You realize that the FDI entry represents a single transaction. which of the transactions below could (please circle one)? Foreigners build a factory in Arcadia. An Arcadian firm builds a factory abroad. None of the above. Please circle one of the options in bold below, and fill in the blank. Arcadia is GAINING/LOSING foreign exchange reserves, in the amount of ____________ Assuming the central bank isn't sterilizing its foreign exchange transactions, Arcadia s n is INCREASING/DECREASING
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