--%>
Assignment Help - homework help

Alphas balance of payments

Alpha’s balance of payments for the year of 2005 as illustrated below. All of the figures are in billions of dollars. Describe

(a) the balance of trade,

(b) for the year of 2005, Alpha’s balance of payments as illustrated below. Figures are in billions of dollars describe the balance on goods and services through the figure.

(c) for 2005, Alpha’s balance of payments is given below. (billions of dollars) Estimate the balance on current account

(d) Alpha’s balance of payments is depicted below of 2005. Calculate the balance on capital account?

Does Alpha contain a balance of payments deficit or surplus? Depict.

Merchandise exports       +$40               Net Transfers                                    +$10
Merchandise imports         -30                Foreign investment in Canada              + 10
Service exports               +15                Canadian investment abroad               - 40
Service imports                -10                Official international reserves               + 10
Net investment income     - 5









 

E

Expert

Verified

Balance of trade = $10 billion surplus (= exports of goods of $40 billion minus imports of goods of $30 billion). Balance on goods and services = $15 billion surplus (= $55 billion of exports of goods and services minus $40 billion of imports of goods & services). Balance on present account = $20 billion surplus (= credits of $65 billion minus debits of $45 billion). Balance on capital account = $30 billion deficit (= Foreign investment in Canada of $10 billion minus Canadian investment abroad of $40 billion). Balance of payments = $10 billion deficit.

 

   Related Questions in Finance Basics

  • Q : Firm risk of any capital budgeting

    Describe how to measure the firm risk of any capital budgeting project. The firm risk of a capital budgeting project measures the effect of adding a new project to the present projects of the firm.

    		•
  • Q : Describe compensating balances its need

    Describe compensating balances and why do banks needs them from some customers? Under what situation would banks be most likely to impose compensating balances? Compensating balances are funds that a bank needs a customer to maintain in a non-i

    		•
  • Q : Purchasing power parity of US and

    Under what condition would the U.S. dollar and the Canadian dollar said to be have achieved purchasing power parity? The U.S. dollar and the Canadian dollar would be assumed to have achieved purchasing power parity while the exchange rate reflec

    		•
  • Q : Describe formula to figure out

    Normal 0 false false

    		•
  • Q : Define the term Surplus Define the term

    Define the term Surplus: It is an outdated term for a fund’s excess of assets (or resources) over liabilities.

    		•
  • Q : What is Shared Revenue Shared Revenue:

    Shared Revenue: It is a state-imposed tax, like the gasoline tax, that is shared with the local governments in proportion, or significantly in proportion, to the amount of tax collected or generated in each local unit. The tax might be collected eithe

    		•
  • Q : Why banks make short-term or

    Banks desire to make short-term, self-liquidating loans to businesses. Why? Banks desire to be able to illustrate where the funds are likely to come from such that the borrower is capable to employ to make the req

    		•
  • Q : Explain the term Balance Available

    Explain the term Balance Available: In regards to a fund, it is the surplus of resources over uses. For budgeting aims, the balance accessible in a fund condition is the carry-in balance, net of any preceding year adjustments, plus revenues and transf

    		•
  • Q : Define Organization Code Organization

    Organization Code: The four-digit code allotted to each state governmental entity (and at times to exclusive budgetary programs) for fiscal system aims. The organization code is the initial segment of the budget item or appropriation

    		•
  • Q : How are financial trades made in an

    How are financial trades made in an over the counter market?On the contrary to the organized exchanges that have physical locations, the over the counter market contain no fixed location, or more accurately, it is everywhere. The over the counte

    		•