Question: Why must the current account balance equal the value of the capital account balance (in opposite sign)?

Why must the current account balance equal the value of the capital account balance (in opposite sign)?

Step by Step Solution

★★★★★

3.15 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Transactions recorded to the balance of payment accounts use standard doubleentry b... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

403-B-B-F-M (1573).docx

120 KBs Word File

Students Have Also Explored These Related Banking Questions!

Q:

The accompanying figure illustrates the current account balance for Canada from 1987 to 2016. A positive balance represents a trade surplus, while a negative one represents a trade deficit. While...

Q:

Why must the current account balance plus the financial account balance equal zero? Briefly explain in what sense a country can run a balance-of-payments surplus or a balance-of-payments deficit.

Q:

The current account balance equals ______. A. Exports minus imports plus net interest and net transfers B. Net exports plus net foreign investment in the United States C. Capital and financial...

Q:

Why must the current account balance equal the value of the capital account balance (in opposite sign)? (LG 9-1)

Q:

Why must the current account balance equal the value of the capital plus financial account balance (in opposite sign)? (LG 9-1) LO.1

Q:

17. Why must the current account balance equal the value of the capital plus financial account balance (in opposite sign)? (LG 9-1)

Q:

Why must the current account balance equal the value of the capital plus financial account balance (in opposite sign)? AppendixLO1

Q:

Data table 2004 2005 2006 2007 2008 2009 59,512 84,602 92.316 72,193 103,935 50,384 Russia's (Russian Federation's) Balance of Payments Assumptions (millions of USS) 2000 2001 2002 2003 A. Current...

Q:

The value of all economic transactions between one country and the rest of the world over some time period is known as the: capital account. current account. balance of payments.The value of all...

Q:

NEEDED ASAP This question has 4 parts: 1) The current account balance is __ billion dollars. 2) The capital and financial account balance is __ billion dollars. 3) The official settlements account...

Q:

Design a circuit which displays the letters A through J on a seven-segment indicator. The circuit has four inputs W, X, Y, Z which represent the last 4 bits of the ASCII code for the letter to be...

Q:

Consider a chromatography experiment in which two components with retention factors k'1=400 & K'2=500 are injected into a column with N=103 theoretical plates. The retention time for the...

Q:

how to calculate the qbi if there is a business loss

Q:

What is the output of Direct and Manage Execution? A. * Forecasts B. Deliverables C. Project management processes D. Approved change requests

Q:

A bank is planning to make a loan of $5,000,000 to a firm in the steel industry. It expects to charge a servicing fee of 50 basis points. The loan has a maturity of 8 years with a duration of 7.5...

Q:

A firm is issuing two-year debt in the amount of $200,000. The current market value of the assets is $300,000. The risk-free rate is 4 percent and the standard deviation of the rate of change in the...

Q:

A firm has assets of $200,000 and total debts of $175,000. With an option pric- ing model, the implied volatility of the firm's assets is estimated at $10,730. Under the KMV method, what is the...

Q:

The Green Giant has a 5 percent profit margin and a 3 9 percent dividend payout ratio. The total asset turnover is 1 . 1 times and the equity multi times. What is the sustainable rate of growth?...

Q:

Par Two: 4 questions ((Please round up your answer to the nearest two decimals) 1. (20 points) : Your credit card's annual interest rate is 24 pereent and your credit card begins the billing cycle on...

Q:

Your firm is contemplating the purchase of a new $773,500 computer-based order entry system. The system will be depreciated straight-line to zero over its sevn-year life. It will be worth $53,000 at...