$$\begin{array} { | l | c | }
\hline \text { (1) Goods exports } & + \$ 220 \
\hline \text { (2) Goods imports } & - 328 \
\hline \text { (3) Exports of services } & + 54 \
\hline \text { (4) Imports of services } & - 55 \
\hline \text { (5) Net investment income } & + 18 \
\hline \text { (6) Net transfers } & - 11 \
\hline \text { (7) Capital account } & - 1 \
\hline \text { (8) Foreign purchases of Econland assets } & + 124 \
\hline \text { (9) Econland purchases of foreign assets } & - 21 \
\hline
\end{array}$$ The table contains balance of payments data for the hypothetical nation of Econland. All ?gures are in billions of dollars. Econland's balance on the capital and ?nancial accounts is a
A) de?cit of $110 billion.
B) surplus of $92 billion.
C) surplus of $102 billion.
D) surplus of $103 billion.

Question

$$\begin{array} { | l | c | } 
\hline \text { (1) Goods exports } & + \$ 220 \
\hline \text { (2) Goods imports } & - 328 \
\hline \text { (3) Exports of services } & + 54 \
\hline \text { (4) Imports of services } & - 55 \
\hline \text { (5) Net investment income } & + 18 \
\hline \text { (6) Net transfers } & - 11 \
\hline \text { (7) Capital account } & - 1 \
\hline \text { (8) Foreign purchases of Econland assets } & + 124 \
\hline \text { (9) Econland purchases of foreign assets } & - 21 \
\hline
\end{array}$$ The table contains balance of payments data for the hypothetical nation of Econland. All ?gures are in billions of dollars. Econland's balance on the capital and ?nancial accounts is a
A) de?cit of $110 billion.
B) surplus of $92 billion.
C) surplus of $102 billion.
D) surplus of $103 billion.

Quizplus · Accepted Answer

We need to calculate the capital and financial account balance by subtracting the total of the current account (sum of goods exports, goods imports, exports of services, imports of services, net investment income, and net transfers) from the combined total of the capital account and financial account (sum of capital account, foreign purchases of Econland assets, and Econland purchases of foreign assets).

Total current account balance = $220 - $328 + $54 - $55 + $18 - $11 = -$102 billion 
Combined total of capital and financial account = -$1 + $124 - $21 = $102 billion 
Capital and financial account balance = $102 billion - (-$102 billion) = $204 billion

Since the capital and financial account balance is positive, it indicates a surplus of $204 billion, and the correct answer is C.

The Table Contains Balance of Payments Data for the Hypothetical