A Summary of the U.S. Balance of Payments for 2021 (in $ billion) Current Account [1]...

  

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A Summary of the U.S. Balance of Payments for 2021 (in $ billion) Current Account [1] Exports [1.1] Goods [1.2] Services [2] Imports [2.1] Goods [2.2] Services [3] Primary income [4] Secondary income Balance on current account [[1]+[2]+[3]+[4]] Capital Account Balance on capital account Financial Account (excluding official reserves) [5] Direct investment. [6] Portfolio investment [6.1] Equity securities [6.2] Debt securities [6.3] Derivatives, net [7] Other investment Balance on financial account [[5]+[6]+[7]] [B] Statistical discrepancies Overall balance: official Reserve Account Source: The US Bureau of Economic Analysis Credits $2,629.0 1,698.0 931.0 1,259.9 249.2 1.9 437.2 353.9 -334.1 511.3 176.7 546.4 845.2 48.6 Debits -$3,509.7 -2,738.6. -771.1 -983.0 -421.9 -776.5 -20.0 -18.1 -212.2 13.5 253.4 -239.9 -293.6 -2.0 -48.6 k 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? A Summary of the U.S. Balance of Payments for 2021 (in $ billion) Current Account [1] Exports [1.1] Goods [1.2] Services [2] Imports [2.1] Goods [2.2] Services [3] Primary income [4] Secondary income Balance on current account [[1]+[2]+[3]+[4]] Capital Account Balance on capital account Financial Account (excluding official reserves) [5] Direct investment. [6] Portfolio investment [6.1] Equity securities [6.2] Debt securities [6.3] Derivatives, net [7] Other investment Balance on financial account [[5]+[6]+[7]] [B] Statistical discrepancies Overall balance: official Reserve Account Source: The US Bureau of Economic Analysis Credits $2,629.0 1,698.0 931.0 1,259.9 249.2 1.9 437.2 353.9 -334.1 511.3 176.7 546.4 845.2 48.6 Debits -$3,509.7 -2,738.6. -771.1 -983.0 -421.9 -776.5 -20.0 -18.1 -212.2 13.5 253.4 -239.9 -293.6 -2.0 -48.6 k 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?

Answer rating: 100% (QA)

a1 To compute the balance on the US direct investment subtract the debits outflows from the credits inflows related to direct investment Balance on US ... View the full answer