You Are Provided with the Following Information About a Country's

question 2

Essay

You are provided with the following information about a country's international transactions during a given year (in millions): $\begin{array}{ll}\text { Serv ice exports } & \$ 346 \\\text { Service imports } & \$ 354 \\\text { Merchandise exports } & \$ 480 \\\text { Merchandise imports } & \$ 348 \\\text { Income flows, net } & \$ 153 \\\text { Gifts to foreigners } & \$ 142 \\\text { Increase in the country's holding of foreign assets, net } & \$ 352\\\text { (excluding official reserves assets) }\\\text { Increase in foreign holdings of the country's assets, net }&\$252\\\text { (excluding official reserves assets) }\\\text { Statistical discrepancy, net credit }&\$154\end{array}$ Calculate the official settlements balance and the current account balance.
Is the country increasing or decreasing its net holdings of official reserve assets? Why?

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Definitions:

General Attitudes

The overall tendencies or orientations of an individual toward a particular object or issue, encompassing feelings, thoughts, and behavioral intentions.

Specific Behaviors

Actions or reactions of an individual in response to external or internal stimuli.

Predictors

Variables that are used to forecast or anticipate future events or outcomes.

Bogus Pipeline

A psychological technique used to encourage participants to truthfully respond to sensitive questions.