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 70 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?

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?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

An example of sodium balance achieved by the coordinated actions of three hormones. An example of sodium balance achieved by the coordinated actions of three hormones.
The proportion of obese and extremely obese adults in the United States has increased over the past The proportion of obese and extremely obese adults in the United States has increased over the past
Is the self the same as the brain? Materialists contend that in the final analysis, mental states ... Is the self the same as the brain? Materialists contend that in the final analysis, mental states ...
Cylinder Power Balance Test Cylinder Power Balance Test
Weight management is such a hot topic in the United States that it is frequently Weight management is such a hot topic in the United States that it is frequently
Kudzu native to Asia is overgrowing trees across the southeastern United States. Kudzu native to Asia is overgrowing trees across the southeastern United States.
Video: Dissociative Disorders (Part 2)

For a complete list of videos, visit our video library