Answer to Question #89378 in Macroeconomics for cynthia pazata

Question

Part B
The table below gives contains hypothetical international balance of payment data for Australia.
All figures are in billions. Calculate the missing elements (i) – (vi), with the appropriate sign
(+ or -) and enter the values in the table. (6 marks)
INTERNATIONAL BALANCE OF
PAYMENTS
(HYPOTHETICAL
DATA)
CURRENT ACCOUNT
(1) Goods exports +150
(2) Goods imports -200
(3) Goods balance (i)
(4) Services exports +75
(5) Services imports -60
(6) Goods and services balance (ii)
(7) Income balance +12
(8) Current transfers net -7
(9) Current account balance (iii)
CAPITAL AND FINANCIAL ACCOUNT
(10) Capital account balance -10
(11) Financial account balance +90
(12) Direct Investment +65
(13) Portfolio Investment (iv)
(14) Financial Derivatives 0
(15) Other Investment 0
(16) Reserve assets -5
(17) Capital and financial account balance (v)
(18) Net errors and omission (vi)

Answer 1

CURRENT ACCOUNT

(1) Goods exports +150

(2) Goods imports -200

(3) Goods balance = -50

(4) Services exports +75

(5) Services imports (-60)

(6) Goods and services balance (-35)

(7) Income balance +12

(8) Current transfers net -7

(9) Current account balance (-30)

CAPITAL AND FINANCIAL ACCOUNT

(10) Capital account balance -10

(11) Financial account balance +90

(12) Direct Investment +65

(13) Portfolio Investment (145)

(14) Financial Derivatives 0

(15) Other Investment 0

(16) Reserve assets -5

(17) Capital and financial account balance (140)

(18) Net errors and omission (0)