Balance of payments - calculation (1)

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	Credits (+), Debits (-)	$m (2011)
	Current account
1	Exports of goods	??
2	Imports of goods	-3155
3	Balance of trade in goods	-405

4	Exports of services	580
5	Imports of services	-490
6	Balance of trade in services	??

7	Income receipts (investment income)	245
8	Income payments (investment income)	??
9	Net income receipts (investment income)	-35
10	Current transfers (net)	-55
11	Net income flows	??

12	Current account balance	??

	Capital account
13	Capital account transactions (net)	250

	Financial account
14	Direct investment, net	75
15	Portfolio investment, net	??
16	Reserve assets funding	65
17	Errors and omissions	60
18	Capital and financial account balance	405

Define the following terms:

(a) Net current transfers
(b) Financial account
(c) Capital account

Calculate the missing figures from the balance of payments account for Country Y given above and place them in the appropriate box.

Suggest, and explain, the action(s) government will need to take to maintain a fixed exchange rate. .

Evaluate two possible policies to correct the current account position country Y faces.

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International economics