(Table) The current account balance is: $$\begin{array}{l}
\text { Balance of Payments (billions of U.S. dollars) }\
\begin{array} { l c }
\hline \text { Component } & \text { Amount } \
\text { Exports } & \$ 1,800 \
\text { Imports } & 2,300 \
\text { Income received } & 490 \
\text { Income payments } & 540 \
\text { Net transfers } & - 100 \
\text { Increase in foreign-owned } & \
\text { assets in the United States } & 700 \
\text { Increase in U.S.-owned } & \
\text { assets abroad } &100
\end{array}
\end{array}$$

Question

(Table) The current account balance is: $$\begin{array}{l}
\text { Balance of Payments (billions of U.S. dollars) }\
\begin{array} { l c } 
\hline \text { Component } & \text { Amount } \
\text { Exports } & \$ 1,800 \
\text { Imports } & 2,300 \
\text { Income received } & 490 \
\text { Income payments } & 540 \
\text { Net transfers } & - 100 \
\text { Increase in foreign-owned } & \
\text { assets in the United States } & 700 \
\text { Increase in U.S.-owned } & \
\text { assets abroad } &100  
\end{array}
\end{array}$$

Quizplus · Accepted Answer

The current account balance is the sum of the trade balance (exports minus imports), net income (income received minus income payments), and net transfers. In this case, the trade balance is -$500 billion (imports exceed exports by $500 billion), net income is -$50 billion (income payments exceed income received by $50 billion), and net transfers are -$100 billion. Therefore, the current account balance is -$650 billion.

(Table) the Current Account Balance Is A) -$650 Billion