Question

The following table lists balance of payment current accounts for Country A.

Current Accounts
1.	Exports of goods, services, and income		$169,503
2.	Goods, adjusted, excluding military	$93,493
3.	Services	46,489
4.	Income receipts on U.S. assets abroad	31,521
5.	Imports of goods, services, and income		?151,336
6.	Goods, adjusted, excluding military	?84,507
7.	Services	?32,089
8.	Income payments on foreign assets in the United States	?35,540
9.	Unilateral transfers, net		?9,461

a.	What is Country A’s total current accounts?

Total current accounts

$

b.	What is Country A’s balance on goods?

Balance on goods

$

c.	What is Country A’s balance on services?

Balance on services

$

d.	What is Country A’s balance on investment income? (Negative amount should be indicated by a minus sign.)

Balance on investment income

$

Answer 1

(a)

Calculate Country A's total current accounts -

Total current acounts = Exports of goods, services, and income - Imports of goods, services, and income + Net unilateral transfers

Total current accounts = $169,503 - $151,336 + $9,461 = $27,628

Country A's total current accounts is $27,628.

(b)

Calculate Country A's balance on goods -

Balance on goods = Export of goods - Import of goods

Balance on goods = $93,493 - $84,507 = $8,986

Country A's balance on goods is $8,986.

(c)

Calculate Country A's balance on services -

Balance on services = Export of services - Import of services

Balance on services = $46,489 - $32,089 = $14,400

Country A's balance on services is $14,400.

(d)

Calculate Country A's balance on investment income -

Balance on investment income = Income receipts on US assets abroad - Income payments on foriegn assets in the US

Balance on investment income = $31,521 - $35,540 = -$4,019

Country A's balance on investment income is -$4,019.