Answer the Question on the Basis of the Following 2012

question 52

Multiple Choice

Answer the question on the basis of the following 2012 balance of payments data (+ and -) for the hypothetical nation of Zabella.All figures are in billions of dollars. $\begin{array}{c}\begin{array}{lll}\text {Current Account}\\\hline \text {1) Goods Exports}\\\text {2) Goods Imports}\\\text {3) Exports of Services}\\\text {4) Imports of Services}\\\text {5) Net Investment Income}\\\text {6) Net Transfers}\\\\\text {Financial Account}\\\hline \text {7) Foreign Purchases of Assets in the United States}\\\text {8) US Purchases of Assets Abroad}\\\\\text {Capital Account}\\\hline \text {9) Balance on Capital Account}\end{array}\begin{array}{r}\\\hline+\$ 80 \\-70 \\+20 \\-25 \\+5 \\-5 \\\\\\\hline+13 \\-23\\\\\\\hline+5 \end{array}\end{array}$

Refer to the given data.Zabella's balance on goods and services shows a:

• A) $5 billion deficit.
• B) $5 billion surplus.
• C) $10 billion surplus.
• D) $15 billion deficit.

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Definitions:

Owner's Equity

Owner's equity is the residual interest in the assets of the entity after deducting liabilities, representing what the owners or shareholders own outright.

Total Liabilities

The combined amount of all debts and other financial obligations owed by an entity at a given time.

Liabilities

Financial obligations owed by a business to others, such as loans, accounts payable, and mortgages, which must be paid in the future.

Debts

Money that is owed or due to another individual or entity.