Balance of payments accounts, International Economics

Assignment Help:

Q. Consider how the United States' balance of payments accounts are affected when U.S. banks give two billion in debt owed to them by the government of Argentina.

Answer: In this case the United States builds a two billion dollars capital transfer to Argentina which must appear as a negative two billion dollar entry in the capital account. The linked credit is in the financial account in the form of a two billion dollar reduction in U.S. assets supposed abroad that is a net asset "export" and so a positive balance of payments entry.


Related Discussions:- Balance of payments accounts

Reciprocal demand, Offer curves with example and explabation

Offer curves with example and explabation

Determine the amount of money an individual desires to hold, Q. What are th...

Q. What are the factors that determine the amount of money an individual desires to hold? Answer: Three major factors that are first one the expected return the asset offers co

Situations when a tariff and a quota are not equivalent, Q. Economic theor...

Q. Economic theory in general and trade theory in particular are replete with equivalencies. For illustration, it is argued that for any specific tariff one can search an equival

Wate is the national incom of india aims & objective., wate is the nationa...

wate is the national incom of indi aims & objectives

What if the taste bias favored the imported good, Q. One of the usually us...

Q. One of the usually used assumptions in deriving the Heckscher-Ohlin model is that tastes are homothetic, or that if the per capita incomes were the similar in two countries, th

How the timing of a balance of payment crisis is determined, Q. Explain how...

Q. Explain how the timing of a balance of payment crisis is determined.  Be careful to state all assumptions.   Answer:  The assumptions of the model are: Prices are el

Long term self-generated economic growth, Q. It can be argued that Japan's...

Q. It can be argued that Japan's explicit promotion of its microchip industry was an excellent paradigm of successful industrial policy. What criteria could you apply to calculat

What is the purpose of the following figure, Q. What is the purpose...

Q. What is the purpose of the following figure? Answer: The use of the figure is to show the inflation convergence within the six original EMS members. The f

Explain how money markets linked foreign exchange market, Q. Explain how th...

Q. Explain how the money markets of two countries are linked through the foreign exchange market. Answer: The financial policy actions by the Fed affect the U.S. interest rate

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd