This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What are the three balance of payments accounts? Briefly describe them. What is the relationship ... (Read 74 times)

michelleunicorn

  • Hero Member
  • *****
  • Posts: 565
on: Jun 29, 2018
What are the three balance of payments accounts? Briefly describe them. What is the relationship among the three?
 
  What will be an ideal response?

Question 2

Pedro's utility of wealth is 6 units for 10,000 and 10 units for 20,000. A friend gave him a lottery ticket for his birthday. The ticket won, giving him either 10,000 with probability 0.5 or 20,000 with probability 0.5.
 
  Pedro's expected utility from the lottery ticket is A) between 6 and 8 units.
  B) equal to 8 units.
  C) between 8 and 10 units.
  D) equal to 10 units.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Heffejeff

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 29, 2018
Answer to Question 1

The three balance of payment accounts are the current account, the capital account, and the official settlements account. The current account records exports, imports, net interest, and net transfers. The capital account records foreign investment in the United States and U.S. investment abroad. Finally, the official settlements account shows changes in U.S. official reserves, the government holdings of foreign currency. The relationship is that the current account balance plus capital account balance plus official settlements account must sum to zero.

Answer to Question 2

B


michelleunicorn

  • Member
  • Posts: 565
Reply 2 on: Jun 29, 2018
Excellent

Bigfoot1984

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Relationship between winter rainfall and chuckwalla, Sauromalus, size Relationship between winter rainfall and chuckwalla, Sauromalus, size
The accessory organs of the digestive system: the liver, gallbladder, and pancreas. Image shows the The accessory organs of the digestive system: the liver, gallbladder, and pancreas. Image shows the
Ecosystem and Balance Ecosystem and Balance
Sodium Balance Sodium Balance
Energy Balance Energy Balance
Example of calculation of days in accounts receivable (AR). Example of calculation of days in accounts receivable (AR).
Video: What is Reverse Osmosis?

For a complete list of videos, visit our video library