The Next Questions Refer to the Following

question 31

Multiple Choice

The next questions refer to the following.
Consider a country that, during a given year, has
$20 billion in net exports of goods,
-$3 billion in net exports of services,
$3 billion in repatriated income,
-$7 billion in net overseas transfers,
-$25 billion in net direct investment,
$41 billion in net portfolio investment,
-$10 billion in other net investment, and no additional capital account transactions.
-This country is most likely

• A) experiencing a balance of payments crisis
• B) accumulating $19 billion in foreign reserves
• C) reducing its holding of foreign reserves by $7 billion
• D) missing $11 billion in errors and omissions
• E) borrowing $4 billion from the IMF