Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
If the United States imports goods and services for a total of $45 billion, exports goods and services for a total of $40 billion, records $4 billion as net interest and zero as net transfers, then the U.S. current account balance is
To calculate the U.S. current account balance, we need to consider all the components of the current account: goods and services (trade balance), net primary income (which includes interest), and net secondary income (which includes transfers). Given: U.S. imports of goods and services: $45 billionRead more
To calculate the U.S. current account balance, we need to consider all the components of the current account: goods and services (trade balance), net primary income (which includes interest), and net secondary income (which includes transfers).
Given:
U.S. imports of goods and services: $45 billion
U.S. exports of goods and services: $40 billion
Net interest: $4 billion
Net transfers: $0
Step 1: Calculate the trade balance (net exports)
Trade balance = Exports – Imports
Trade balance = $40 billion – $45 billion = -$5 billion (deficit)
Step 2: Calculate the net primary income
Net primary income = Net interest = $4 billion
Step 3: Calculate the net secondary income
Net secondary income = Net transfers = $0
Step 4: Calculate the current account balance
Current account balance = Trade balance + Net primary income + Net secondary income
Current account balance = -$5 billion + $4 billion + $0 = -$1 billion (deficit)
Therefore, the U.S. current account balance is a deficit of $1 billion.
See lessSuppose you own some German government bonds that pay you interest every year. This interest is entered into which of the balance of payments accounts?
The correct answer is A) interest account, which is a sub-account of the current account (choice C). The balance of payments (BOP) is a statement that summarizes all transactions made between a country and the rest of the world during a specific period. The main components of the BOP are: Current acRead more
The correct answer is A) interest account, which is a sub-account of the current account (choice C).
The balance of payments (BOP) is a statement that summarizes all transactions made between a country and the rest of the world during a specific period. The main components of the BOP are:
Current account
Capital and financial account
Official settlements account (also known as the official reserves account)
The current account includes the trade balance (exports minus imports), net primary income (such as interest and dividends), and net secondary income (such as foreign aid and remittances).
In this case, the interest earned on German government bonds would be recorded in the interest account, which is a sub-account of the primary income account within the current account. The interest account specifically deals with the income earned from foreign investments, such as bonds, deposits, and loans.
While the current account (choice C) is not the most precise answer, it is still correct because the interest account is a component of the current account.
See lessWhat Was The First Wordle Answer?
CIGAR was the very first Wordle word (6/19/2021).
CIGAR was the very first Wordle word (6/19/2021).
See lessStacy was in the passenger seat or the driver seat when she was struck by a drunk driver?
Driver seat.
Driver seat.
See lessDrivers who text spend about 10% of their driving time outside their own driving lane.
This is True.
This is True.
See lessThe National Safety Council reports that distracted driving leads to 16 thousand crashes each year.
False. 1.6 million crashes each year
False. 1.6 million crashes each year
See lessResearchers designing online studies should consider the following with respect to participant protections.
Re-identification methods are unique to internet-based research.
Re-identification methods are unique to internet-based research.
See lessMariah was in an accident and lost her life because
Q: Why did Mariah lose her life in an accident? A: Mariah lost her life because she was trying to answer a text on her phone while driving or operating a vehicle. Distracted driving, such as using a mobile phone to read or send messages, significantly increases the risk of accidents that can lead toRead more
Q: Why did Mariah lose her life in an accident?
See lessA: Mariah lost her life because she was trying to answer a text on her phone while driving or operating a vehicle. Distracted driving, such as using a mobile phone to read or send messages, significantly increases the risk of accidents that can lead to serious injuries or fatalities.
Mariah was in an accident and lost her life because
She was trying to answer a text on her phone
She was trying to answer a text on her phone
See less