-The Above Table Shows Some of the Balance of Payments

question 177

Multiple Choice

$\begin{array}{|l|l|}\hline \text { Item } & \text { Billions of dollars } \\\hline \begin{array}{l}\text { Exports of goods and } \\\text { services }\end{array} & 635 \\\hline \begin{array}{l}\text { Imports of goods and } \\\text { services }\end{array} & 555 \\\hline \text { Net interest income } & -18 \\\hline \text { Net transfers } & 22 \\\hline \begin{array}{l}\text { Urland's investment } \\\text { abroad }\end{array} & 467 \\\hline \begin{array}{l}\text { For eign investment in } \\\text { Urland }\end{array} & 321 \\\hline\end{array}$
-The above table shows some of the balance of payments accounts for Urland. What is Urland?s balance on the capital and financial account?

• A) -$183 billion
• B) -$99 billion
• C) -$146 billion
• D) $142 billion

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Definitions:

Ask Price

The lowest price a seller is willing to accept for an asset in the financial markets; it contrasts with the bid price, which is the highest price a buyer is willing to pay.

Coupon Bond

A type of bond that provides periodic interest payments to its holder, based on a fixed interest rate (coupon rate) until its maturity, at which point the principal amount is repaid.

Accrued Interest

The interest that has accumulated on a bond since the last interest payment was made, which the buyer of the bond must pay to the seller if the bond is bought between interest payment dates.

Zero-Coupon Bond

A zero-coupon bond is a debt security that doesn't pay periodic interest but is sold at a deep discount, providing profit at maturity when the bond is redeemed for its full face value.