Question: Problem 1. A country has certain cross-border flows recorded for the year. Exported and imported goods and services account for $700bln and $600bln respectively,

Problem 1. A country has certain cross-border flows recorded for the year.

Problem 1. A country has certain cross-border flows recorded for the year. Exported and imported goods and services account for $700bln and $600bln respectively, net labor payments are zero while net interest payments are -$50bln. During the period, the Central Bank increased its reserves by $100bln. External government debt decreased by $80 bln. What are the current and financial accounts in a balance of payments?

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