CHAPTER 10 Study Guide

STATEMENT OF INTERNATIONAL TRANSACTIONS



U.S. International Transactions Table, 1993 ($ bill.)

1. Merchandise exports +200
2. Merchandise imports -300
3. Service exports +100
4. Service imports -80
5. Income receipts on U.S. assets abroad +60
6. Income payments on foreign assets in the U.S. -30
7. Government grant, private remittances 0
8. Change in U.S. private assets abroad, net increase -50
9. Change in foreign private assets in the U.S., net increase +100
10. Statistical discrepancy ?
11. Change in U.S. Official Reserves, net -10
12. Change in Foreign Official Reserves, net +10




Use the above U.S. International Transactions Table to answer the following related questions:



The statistical discrepancy entry should be



The following items are autonomous: numbers _____________ e.g., 1 through 9 or 9 and 10, etc.



The following are accommodating items: numbers _____________ e.g., 1 through 9 or 9-10, etc.



The balance on merchandise trade should be



The balance on goods and services is



The balance on the current account is



The capital account balance is



The official reserve transactions balance is



The overall international transactions statement indicates a surplus (deficit) of







Additional Study Guide Questions

Chapter 10





  1. What are the main determinants of a country's imports and exports?






  2. How are surpluses and deficits on goods and services related to domestic savings and investment? Explain the current situation in the United States and in Japan.






  3. Assume the U.S. has an overall deficit balance (official reserve transaction balance deficit) of -$53 billion. Describe and give examples of two methods by which this deficit can be financed.