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The Following Balance-Of-Payments Data Are for the Hypothetical Nation of Zabella

Question 17

Multiple Choice

The following balance-of-payments data are for the hypothetical nation of Zabella. All figures are in billions of dollars.

 Merchandise exports +$80 Merchandise imports 70 Service exports +20 Service imports 25 Investment income +5 Transfers 5 Capital and financial inflows +13 Capital and financial  outflows 23 Changes in official reserves +5\begin{array} { | l | c | } \hline \text { Merchandise exports } & + \$ 80 \\\hline \text { Merchandise imports } & - 70 \\\hline \text { Service exports } & + 20 \\\hline \text { Service imports } & - 25 \\\hline \text { Investment income } & + 5 \\\hline \text { Transfers } & - 5 \\\hline \text { Capital and financial inflows } & + 13 \\\hline \begin{array} { l } \text { Capital and financial } \\\text { outflows }\end{array} & - 23 \\\hline \text { Changes in official reserves } & + 5 \\\hline\end{array}
-Zabella is experiencing a merchandise trade:


A) deficit of $10 billion
B) surplus of $5 billion
C) surplus of $10 billion
D) deficit of $5 billion
E) deficit of $15 billion

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