Balance of payments - calculation (1)
| 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 |
Question 1
Define the following terms:
(a) Net current transfers
(b) Financial account
(c) Capital account
Question 2
Calculate the missing figures from the balance of payments account for Country Y given above and place them in the appropriate box.
Question 3
Suggest, and explain, the action(s) government will need to take to maintain a fixed exchange rate. .
Question 4
Evaluate two possible policies to correct the current account position country Y faces.
