$$\begin{array} { l r }
\text { Variables } & \text { (billions of dollars) } \
\hline \text { Imports of goods and services } & 1,000 \
\text { Exports of goods and services } & 900 \
\text { Net interest } & - 100 \
\text { Net transfers } & 0 \
\text { Foreign investment in the United States } & 1,190 \
\text { U.S. investment abroad } & 1,000 \
\text { Decrease in U.S. official reserves } & 10
\end{array}$$
The table above gives data on the U.S.balance of payments in 2015.
-The current account balance is

Question

$$\begin{array} { l r } 
\text { Variables } & \text { (billions of dollars) } \
\hline \text { Imports of goods and services } & 1,000 \
\text { Exports of goods and services } & 900 \
\text { Net interest } & - 100 \
\text { Net transfers } & 0 \
\text { Foreign investment in the United States } & 1,190 \
\text { U.S. investment abroad } & 1,000 \
\text { Decrease in U.S. official reserves } & 10
\end{array}$$ 
The table above gives data on the U.S.balance of payments in 2015.
-The current account balance is

Quizplus · Accepted Answer

The current account balance can be calculated as follows:
Current Account Balance = (Exports of Goods and Services - Imports of Goods and Services) + Net Transfers
= (900 - 1000) + 0 
= -$100 billion

However, this only takes into account trade in goods and services and net transfers. To calculate the overall balance of payments, we need to also include the capital account. The capital account includes foreign investment in the U.S. (1,190) and U.S. investment abroad (-1,000), as well as the decrease in U.S. official reserves (-10), which gives a total capital account balance of 180 billion dollars.

Overall Balance of Payments = Current Account Balance + Capital Account Balance
= -$100 billion + $180 billion 
= -$200 billion

Therefore, the answer is C) -$200 billion.

The Table Above Gives Data on the U