Ch 5 Global Trade [AP & Reg]

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Unformatted text preview: a Net investment income………………….. ­$10 (deficit/surplus) of ($25/$45/$55) billion Net Transfers………………………………+$15 35. The balance on the current account is a Balance on capital account………………. ­$5 (deficit/surplus) of ($20/$25/$30) billion. Foreign purchases of U.S. Assets……..+$30 36. The balance on the capital account is a U.S. purchases of assets abroad………. ­$15 (deficit/surplus) of ($10/$20/$30) billion. Official Reserves…………………………… +$10 37. This country is experiencing a balance of payment (surplus/deficit) of ($10/$20).[Do not include official reserves] 38. The “official reserves” account indicates this country (imported/exported) $10 billion of its stock of foreign reserves. 39. If the foreign purchases of U.S. assets had been +$45 instead of +$30, then this country would have to (import/export) a $5 billion stock of foreign currency & official reserves would read (­$5/+$5). 40. The current account, capital account, & official reserves must always net to (0/50/100). 17 Ed. 41. We give (inpayments/outpayments) for imports & get (inpayments/outpayments) for exports. 42. U.S. export transactions create foreign (demand for/supply) dollars[appreciation] & this satisfaction (increases/decreases) the supplies of foreign monies held by U.S. banks [depreciation]. 43. If we b...
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