Consider the following Balance of Payments information for the private sector ("above the line"). If the central bank ha
Posted: Sun May 08, 2022 8:49 am
Consider the following Balance of Payments information for the private sector ("above the line"). If the central bank had $100,000 of international reserves, what would be their new international reserves after they balance the BOP? Private Sector Export a car Import a machine $ Sell a domestic apartment to foreigners Buy a foreign stock from foreigners $ Total 43,000 $ 65,000 Net Exports $ (22,000) 39,000 $ 5,000 Total Private Capital Flows 34,000 82,000 $ 70,000 $ 12,000 Total "above the line" Private Sector