Table 20.2
$$\begin{array} { | l | c | }
\hline \text { Current Account } & ( \$ ) \
\hline \text { Merchandise exports } & 500 \
\hline \text { Merchandise imports } & 200 \
\hline \text { Merchandise trade balance } & \
\hline \text { Service exports } & 400 \
\hline \text { Service imports } & 600 \
\hline \text { Goods and services bal ance } & \
\hline \text { Net investment income from abroad } & 50 \
\hline \text { Net unilateral transfers } & - 90 \
\hline \text { Current account balance } & \
\hline
\end{array}$$
-Refer to Table 20.2,which shows a balance-of-payments account.What is the current account balance?

Question

Table 20.2
 $$\begin{array} { | l | c | } 
\hline \text { Current Account } & ( \$ ) \
\hline \text { Merchandise exports } & 500 \
\hline \text { Merchandise imports } & 200 \
\hline \text { Merchandise trade balance } & \
\hline \text { Service exports } & 400 \
\hline \text { Service imports } & 600 \
\hline \text { Goods and services bal ance } & \
\hline \text { Net investment income from abroad } & 50 \
\hline \text { Net unilateral transfers } & - 90 \
\hline \text { Current account balance } & \
\hline
\end{array}$$
-Refer to Table 20.2,which shows a balance-of-payments account.What is the current account balance?

Quizplus · Accepted Answer

The current account balance is calculated by adding the merchandise trade balance, the goods and services balance, net investment income from abroad, and net unilateral transfers. Merchandise trade balance = Merchandise exports - Merchandise imports = $500 - $200 = $300. Goods and services balance = Merchandise trade balance + Service exports - Service imports = $300 + $400 - $600 = $100. Current account balance = Goods and services balance + Net investment income from abroad + Net unilateral transfers = $100 + $50 - $90 = $60.

Table 202 -Refer to Table 20