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Author Question: The United States issues a 10,000 debt forgiveness to Argentina. How is this accounted for in the ... (Read 98 times)

arivle123

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on: Jun 30, 2018
The United States issues a 10,000 debt forgiveness to Argentina. How is this accounted for in the balance of payments?
 
  A) financial account, U.S. asset import
  B) current account, Argentina transfer payment
  C) current account, U.S. service export
  D) financial account, U.S. asset export
  E) current account, Argentina good import

Question 2

Explain the following figure.
 
  What will be an ideal response?


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peilian

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

The figure explains how the money markets of two countries are linked through the foreign exchange market. The monetary policy actions by the Fed affect the U.S. interest rate, changing the dollar/euro exchange rate that clears the foreign exchange market. The European System of Central Banks (ESCB) can affect the exchange rate by changing the European money supply and interest rate.


arivle123

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

Laurenleakan

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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