What was the balance of payments of pecunia in that year

Reference no: EM131134856

The nation of Pecunia had a current account deficit of $1 billion and a nonreserve financial account surplus of $500 million in 2008.

a. What was the balance of payments of Pecunia in that year? What happened to the country's net foreign assets?

b. Assume that foreign central banks neither buy nor sell Pecunian assets. How did the Pecunian central bank's foreign reserves change in 2008? How would this offi- cial intervention show up in the balance of payments accounts of Pecunia?

c. How would your answer to (b) change if you learned that foreign central banks had purchased $600 million of Pecunian assets in 2008? How would these official purchases enter foreign balance of payments accounts?

d. Draw up the Pecunian balance of payments accounts for 2008 under the assumption that the event described in (c) occurred in that year.

Reference no: EM131134856

Questions Cloud

Provide a brief overview of the company and its mission : Provide a brief overview of the company and its mission. List one major issue or event the company had in the past year as discussed in the annual report. Have you read any news on this issue?

Discuss the possible implications for official international : Explain your answer, using hypothetical figures for the current and non-reserve financial accounts. Be sure to discuss the possible implications for official international reserve flows.

What is meant by a gene locus : Is a gene a triplet of consecutive DNA nucleotides? How is the concept of a chromosome related to the concept of the gene? What is meant by a "gene locus"

Using the business model canvas produce a list of hypotheses : Using the attached business model canvas, produce a list of hypotheses- complete a list of metrics you would want to track to test those hypotheses.

What was the balance of payments of pecunia in that year : Draw up the Pecunian balance of payments accounts for 2008 under the assumption that the event described in (c) occurred in that year.

What distribution will you use to determine critical value : The SAT scores are normally distributed. A simple random sample of 225 SAT scores has a sample mean of 1500 and a samplestandard deviation of 300. What distribution will you use to determine the critical value? Why?

What if the new yorker pays cash for the machine : How would these transactions show up in the balance of payments accounts of New York and New Jersey? What if the New Yorker pays cash for the machine?

What types of businesses are exposed to currency fluctuation : What types of businesses are most exposed to currency fluctuations? To fluctuations in the costs of supplies? To fluctuations in the costs of their finished products?

What is hardy-weinberg principle : What is Hardy-Weinberg principle? What are the five major Hardy-Weinberg principles? Explain how they can be broken

User Account

All Pages