US Billions USD Increase in foreign holdings of US assets 84 Increase in US holdings of...

US Billions USD
Increase in foreign holdings of US assets 84
Increase in US holdings of foreign assets 82
Statistical Discrepancy 32
Current Account Balance
Refer to the above table. The Current Account Balance =

Solutions

Expert Solution

Financial account balance should be calculated first:

Financial account balance (FAB) = Increase in foreign holding (Sale) – Increase in US holding (Purchase)

= 84 – 82

= $2 Billion

Hence,

Current account balance = FAB – Statistical discrepancy

= 2 – 32

= - $30 Billion (Answer)

Rahul Sunny answered 2 months ago

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