The table given below reports the value of various international transactions in Germany for the year 2011.The negative sign denotes the outflow of euros from Germany. Table 6.1
Refer to Table 6.1.Calculate the current account balance for Germany for the year 2011.
A)-€1, 720
B)€500
C)-€870
D)€784
E)-€650

Question

The table given below reports the value of various international transactions in Germany for the year 2011.The negative sign denotes the outflow of euros from Germany. Table 6.1
 Refer to Table 6.1.Calculate the current account balance for Germany for the year 2011.
A)-€1, 720 
B)€500 
C)-€870 
D)€784 
E)-€650

Quizplus · Accepted Answer

The current account balance is calculated as the sum of the balance of trade, net income from abroad, and net current transfers. 
Balance of trade = 840 - 650 - 200 - 270 = -280 
Net income from abroad = 1140 - 1000 = 140 
Net current transfers = -350 
Therefore, the current account balance = (-280) + 140 - 350 = -490. 
Since the question asks for the value with a negative sign denoting outflow, the answer is -(-490) = C) -€870.

The Table Given Below Reports the Value of Various International