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 76 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?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

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?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Enzyme activity is affected substantially by temperature Enzyme activity is affected substantially by temperature
Several species of squirrels have melanistic phases. In large parts of United States and Canada, the Several species of squirrels have melanistic phases. In large parts of United States and Canada, the
For millions of people, the United States represents a land of opportunity and freedom from ... For millions of people, the United States represents a land of opportunity and freedom from ...
Renal regulation of sodium and potassium balance. Renal regulation of sodium and potassium balance.
Importance of intermediate states Importance of intermediate states
Physiologic mechanisms maintaining serum sodium balance Physiologic mechanisms maintaining serum sodium balance
Video: Metaphase I Animation

For a complete list of videos, visit our video library