Solution-Calculate the current account balance

Calculate the current account balance

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Reference no: EM133022295

Question - You are provided with the following information about a country's international transactions during a given year (in millions):

Service exports $346

Service imports $354

Merchandise exports $480

Merchandise imports $348

Income flows, net $153

Gifts to foreigners $142

Increase in the country's holding of foreign assets, net $352 (excluding official reserves assets)

Increase in foreign holdings of the country's assets, net $252 (excluding official reserves assets)

Statistical discrepancy, net credit $154

Required -

a) Calculate the current account balance and the country's overall balance.

b) Is the country increasing or decreasing its net holdings of official reserve assets? Why?

Reference no: EM133022295

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Calculate the current account balance

Reference no: EM133022295

Reference no: EM133022295

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