$$\begin{array} { l c }
\text { Balance of payments accounts } & \text { (billions of dollars) } \
\hline \text { Syldavia investment abroad } & 170 \
\text { Exports of goods and services } & 140 \
\text { Net transfers } & 0 \
\text { Change in official reserves } & 0 \
\text { Net interest } & 0 \
\text { Imports of goods and services } & 180 \
\text { Foreign investment in Syldavia } & 210 \
\hline
\end{array}$$
-The table above gives data for the nation of Syldavia.The sum of the current account balance, capital account balance, and the official settlements account balances of Syldavia is equal to

Question

$$\begin{array} { l c } 
\text { Balance of payments accounts } & \text { (billions of dollars) } \
\hline \text { Syldavia investment abroad } & 170 \
\text { Exports of goods and services } & 140 \
\text { Net transfers } & 0 \
\text { Change in official reserves } & 0 \
\text { Net interest } & 0 \
\text { Imports of goods and services } & 180 \
\text { Foreign investment in Syldavia } & 210 \
\hline
\end{array}$$
-The table above gives data for the nation of Syldavia.The sum of the current account balance, capital account balance, and the official settlements account balances of Syldavia is equal to

Quizplus · Accepted Answer

The current account balance is calculated as exports minus imports plus net transfers, which in this case is $140 billion - $180 billion + $0 billion = -$40 billion. The capital account balance is the difference between foreign investment in Syldavia (inflows) and Syldavian investment abroad (outflows), which in this case is $210 billion - $170 billion = $40 billion. The official settlements account balance is the change in official reserves, which is $0 billion. Adding up these three balances, we get -$40 billion + $40 billion + $0 billion = $0 billion. Therefore, the sum of the current account balance, capital account balance, and official settlements account balance is zero.

-The Table Above Gives Data for the Nation of Syldavia