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

Author Question: Consider how the United States balance of payments accounts are affected when U.S. banks forgive two ... (Read 40 times)

wenmo

  • Hero Member
  • *****
  • Posts: 540
on: Jun 30, 2018
Consider how the United States balance of payments accounts are affected when U.S. banks forgive two billion in debt owed to them by the government of Argentina.
 
  What will be an ideal response?

Question 2

Define risk aversion and give an example of a risk-averse person?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mceravolo

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jun 30, 2018
Answer to Question 1

In this case, the United States makes a two billion dollars capital transfer to Argentina, which should appear as a negative two billions entry in the capital account. The associated credit is in the financial account, in the form of a two billion dollars reduction in U.S. assets held abroad, i.e., a net asset export, and therefore a positive balance of payments entry.

Answer to Question 2

Risk aversion is a characteristic of a person that dislikes risk. An example of this is someone who takes out rental or home insurance to reduce the risk of some kind of catastrophe from happening.


wenmo

  • Hero Member
  • *****
  • Posts: 540
Reply #2 on: Jun 30, 2018
Thank you


mceravolo

  • Sr. Member
  • ****
  • Posts: 349
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
Guide to Major Massage Therapy Organizations in the United States* Guide to Major Massage Therapy Organizations in the United States*
Total Fertility Rate in the United States, 1860–2008 Total Fertility Rate in the United States, 1860–2008
Fluid Balance Fluid Balance
Applying the bill of rights to the states Applying the bill of rights to the states
Prevalence rates of obesity in the United States, 2014 Prevalence rates of obesity in the United States, 2014
Video: Basic rhythm - control centers in medulla oblongata, spirograph and normal tidal cycle

For a complete list of videos, visit our video library