Question 2. This table shows hypothetical transactions (in billions of U.S. doll

Question

Question 2. This table shows hypothetical transactions (in billions of U.S. dollars) that took place during a year. For each of the statements following the table, state whether the statement is true or false. To get credit you need to justify your answer by showing why the statement is true/false. International Transactions of the United States Amount (billions of dollars) 10 100 -15 -400 -20 60 30 -10 100 350 -20 190 80 30 -10 Transaction Allocation of SDRs Changes in U.S. assets abroad Statistical discrepancy Merchandise imports Payments on foreign assets in U.S. Remittances, pensions, transfers Travel and transportation receipts, net Military transactions, net Merchandise exports U.S. government grants (excluding military) Changes in foreign assets in the U.S. Other services, net Receipts on U.S. investments abroad Compensation of employees

Explanation / Answer

e. False, the current account registers a deficit of $30 billion.(Total credit on current account= $490 billion and total debit=$520 billion.)

f. False, the net export is -$10 billion

g. False, USA had excess in balance to pay to other countries.

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