Answer the questions below based upon the following Balance of Payments table for Tundraland (figures are in millions of cugats):
(a)What is the balance on the current account? Did more cugats flow in or out of that account?
(b)What is the balance on the financial and capital account? Did more cugats flow in or out of that account?
(c)Suppose Tundraland had purchased cugats.How would you know? Would it be trying to lower or raise the value of its currency? Show graphically.

Question

Answer the questions below based upon the following Balance of Payments table for Tundraland (figures are in millions of cugats):
  (a)What is the balance on the current account? Did more cugats flow in or out of that account?
(b)What is the balance on the financial and capital account? Did more cugats flow in or out of that account?
(c)Suppose Tundraland had purchased cugats.How would you know? Would it be trying to lower or raise the value of its currency? Show graphically.

Quizplus · Accepted Answer

The Answer of Answer the questions below based upon the following Balance of Payments table for Tundraland (figures are in millions of cugats):
  (a)What is the balance on the current account? Did more cugats flow in or out of that account?
(b)What is the balance on the financial and capital account? Did more cugats flow in or out of that account?
(c)Suppose Tundraland had purchased cugats.How would you know? Would it be trying to lower or raise the value of its currency? Show graphically.

Answer the Questions Below Based Upon the Following Balance of Payments