Why does the balance-of-payments statement balance

Reference no: EM131900117

Problem

1. What is meant by the balance of payments?

2. What economic transactions give rise to the receipt of dollars from foreigners? What transactions give rise to payments to foreigners?

3. Why does the balance-of-payments statement "balance"?

4. From a functional viewpoint, a nation's balance of payments can be grouped into several categories. What are these categories?

5. What financial assets are categorized as official reserve assets for the United States?

6. What is the meaning of a surplus (deficit) on the

(a) merchandise trade balance,

(b) goods and services balance, and

Reference no: EM131900117

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