The table below shows Sophie’s financial details for 2016. Answer the following questions about her “balance of payments.”

a. What is Sophie’s “trade balance”? Explain.

b. What is Sophie’s overall current account balance? Explain.

c. What is Sophie’s capital account balance? Explain.

d. There is one (and only one) piece of information shown above that is not needed to compute Sophie’s balance of payments. What is it? Explain why it is not needed.

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Sophie's Financial Details, 2016 Income from lifeguarding $2.500 Income from lawn mowing 3.500 Gift from grandparents 1 000 Interest from bank deposits 150 Expenditure on coffee and pastry 1000 Expenditure on tuition 3 500 Purchase of mutual funds 1 200 Bank balance at end of year Increase in bank balance during the year 3 500 1 450