Examine the summary of the balance of payments of the United States for $2021.$ Compute and discuss the balance on the financial account and its subaccounts.

A Summary of the U$.$S$.$ Balance of Payments for $2021($in $ billion$)$

Credits Debits

Current Account

$[1]$ Exports $$2,563\mathrm{.}0$

$[1\mathrm{.}1]$ Goods $1,668\mathrm{.}0$

$[1\mathrm{.}2]$ Services $895\mathrm{.}0$

$[2]$ Imports $$$$3,239\mathrm{.}7$

$[2\mathrm{.}1]$ Goods $2,588\mathrm{.}6$

$[2\mathrm{.}2]$ Services $651\mathrm{.}1$

$[3]$ Primary income $1,169\mathrm{.}9923\mathrm{.}0$

$[4]$ Secondary income $189\mathrm{.}2331\mathrm{.}9$

Balance on current account $[[1]+[2]+[3]+[4]]572\mathrm{.}5$

Capital Account $\mathrm{.}711\mathrm{.}0$

Balance on capital account $10\mathrm{.}3$

Financial Account $($excluding official reserves$)$

$[5]$ Direct investment $347\mathrm{.}2152\mathrm{.}2$

$[6]$ Portfolio investment $263\mathrm{.}913\mathrm{.}5$

$[6\mathrm{.}1]$ Equity securities $274\mathrm{.}1193\mathrm{.}4$

$[6\mathrm{.}2]$ Debt securities $451\mathrm{.}3179\mathrm{.}9$

$[6\mathrm{.}3]$ Derivatives, net $86\mathrm{.}7$

$[7]$ Other investment $366\mathrm{.}4233\mathrm{.}6$

Balance on financial account $[[5]+[6]+[7]]605\mathrm{.}2$

$[8]$ Statistical discrepancies $3\mathrm{.}0$

Overall balance $19\mathrm{.}4$

Official Reserve Account $19\mathrm{.}4$

Source: The U$.$S$.$ Bureau of Economic Analysis

Required:

a$-1.$ Compute the balance on the U$.$S$.$ direct investment.

a$-2.$ What does the balance on the U$.$S$.$ direct investment you computed above mean?

b$-1.$ Compute the balance on the U$.$S$.$ portfolio investment.

b$-2.$ What does the balance on the U$.$S$.$ portfolio investment you computed above mean?

c$-1.$ Compute the balance on the U$.$S$.$ financial account.

c$-2.$ What does the balance on the U$.$S$.$ financial account you computed above mean? $($Note: Negative amounts should be indicated by a minus sign. Round your answer to $1$ decimal places. Enter your answers in billions of dollars $($e$.$g$.$ $$4,000,000,000$ would be entered as $$4))$

Answer rating: 100% (QA)

Answer to the US Balance of Payments Summary Questions a1 Compute the balance on the US direct investment The balance on US direct investment is calcu... View the full answer