Alphas balance-of-payments data for 2008 are shown below. All figures are in billions of dollars. What are
Question:
Alpha’s balance-of-payments data for 2008 are shown below. All figures are in billions of dollars. What are the
(a) Balance on goods,
(b) Balance on goods and services,
(c) Balance on current account,
(d) Balance on capital and financial account?
Suppose Alpha needed to deposit $10 billion of official reserves into the capital and financial account to balance it against the current account. Does Alpha have a balance-of-payments deficit or surplus? Explain.
Goods exports ……………………………. $+40
Goods imports ……………………………. – 30
Service exports ……………………………. + 15
Service imports ……………………………. – 10
Net investment income ……………………. – 5
Net transfers ………………………………. + 10
Balance on capital account ………………... 0
Foreign purchases of Alpha assets ……….... + 20
Alpha purchases of assets abroad …………. – 40
Step by Step Answer:
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn