Suppose Boulinas' exports equal $50 billion, its purchases of foreign assets equal $100
Billion, and foreign purchase of Boulinas' assets equal $200 billion. What is Boulinas'
Balance on its capital account?

Question

Quizplus · Accepted Answer

The balance on the capital account is calculated as the difference between foreign purchases of domestic assets and domestic purchases of foreign assets. Here, it is $200 billion (foreign purchase of Boulinas' assets) minus $100 billion (Boulinas' purchases of foreign assets), resulting in a $100 billion surplus.

Suppose Boulinas' Exports Equal $50 Billion, Its Purchases of Foreign