The Table Contains Balance of Payments Data (+ and -)

question 66

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { Current Account } & \\\hline \text { (1) Goods Exports } & + \$ 80 \\\hline \text { (2) Goods Imports } & - 70 \\\hline \text { (3) Exports of Services } & + 20 \\\hline \text { (4) Imports of Services } & - 25 \\\hline \text { (5) Net Investment Income } & + 5 \\\hline \text { (6) Net Transfers } & - 5 \\\hline \text { Financial Account } & \\\hline \text { (7) Foreign Purchases of Assets in the United States } & + 13 \\\hline \text { (8) US Purchases of Foreign Assets Abroad } & - 23 \\\hline \text { Capital Account } &\\\hline \text { (9) Balance on Capital Account } & + 5 \\\hline\end{array}$$
The table contains balance of payments data (+ and -) for the hypothetical nation of Zabella. All figures are in billions of dollars. Zabella's balance on the capital and financial account shows a

• A) de?cit of $5 billion.
• B) surplus of $10 billion.
• C) de?cit of $10 billion.
• D) surplus of $5 billion.

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Definitions:

Domestic Investment

The total amount of money that is invested within a country's borders by its residents and businesses.

Net Exports

The difference between a country's total value of exports and its total value of imports, indicating whether a country is a net exporter or importer.

Net Capital Outflow

The difference marked by domestic people's foreign asset purchases compared to foreign people's domestic asset acquisitions.

Software

Programs and other operating information used by a computer to perform specific tasks.