If you havent changed your reserves ie cash savings at all, Accounting Basics

If you havent changed your reserves ie cash savings at all

Question: Practice with the balance of payments:

Current account + Capital account = Change in official reserves

a. Current account = -$10, Capital account = +$15. What is the change in reserves?

b. Current account = -$10, Change in reserves = -$3. What is the capital account?

c. Your college expenses = $12,000, Income from your barista job = $4,000. What is your current account?

If you haven't changed your reserves (i.e., cash savings) at all, what is the capital account (i.e., borrowing from parents or bank)?

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Accounting Basics: If you havent changed your reserves ie cash savings at all

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Accounting Basics: If you havent changed your reserves ie cash savings at all

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