Author Question: Based on the following information, what is the balance on the financial account? Exports of ... (Read 27 times)

nautica902 · **on:** Jun 29, 2018

Based on the following information, what is the balance on the financial account?

Exports of goods and services = 5 billion
Imports of goods and services = 3 billion
Net income on investments = -2 billion
Net transfers = -2 billion
Increase in foreign holdings of assets in the United States = 4 billion
Increase in U.S. holdings of assets in foreign countries = -1 billion

A) 3 billion B) 2 billion C) 1 billion D) -1 billion

Question 2

Bank reserves include

A) vault cash and loans to bank customers.
B) vault cash and deposits with the Federal Reserve.
C) customer checking accounts and vault cash.
D) deposits with the Federal Reserve and holdings of securities.
E) loans to bank customers and deposits with the Federal Reserve.