Answer the question on the basis of the following balance of payments data for the hypothetical nation of Econland. All figures are in billions of dollars. (1) Goods exports +$220
(2) Goods imports -328
(3) Exports of services +54
(4) Imports of services -55
(5) Net investment income +18
(6) Net transfers -11
(7) Capital account -1
(8) Foreign purchases of Econland assets +124
(9) Econland purchases of foreign assets -21
Refer to the table above. Econland's balance on the current account shows a:

Question

Quizplus · Accepted Answer

The current account balance can be calculated as the sum of goods exports, services exports, net investment income, and net transfers, minus the sum of goods imports and services imports.

Current account balance = (220 + 54 + 18 - 11) - (328 + 55) 
Current account balance = -102 billion

Therefore, the correct answer is B, a deficit of $102 billion.

Answer the Question on the Basis of the Following Balance