If net interest and net transfers are $0, and a nationʹs purchases of foreign goods and services are
$3)5 billion while its sales of goods and services to foreigners are $4.5 billion,

Question

Quizplus · Accepted Answer

The current account is calculated as exports minus imports, which in this case results in a surplus of $1 billion ($4.5 billion in exports minus $3.5 billion in imports). Since net interest and net transfers are $0, this surplus is also the overall balance of payments surplus. The information given does not provide any indication of the capital and financial account.

If Net Interest and Net Transfers Are $0, and a Nationʹs