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Category > Economics Posted 05 Jun 2017 My Price 4.00

balance of payments

Discuss this statement: “Because each nation’s balance of payments equals zero, it
follows that there is actuallv no significance to a current account deficit or surplus". In the first half of coca China recorded a current account surplus of US$134 460 million
and a capital account surplus of US$59 fioo million [DEED Main Economic Indicators, Dsflata).
a} 1What do these figures suggest about the value of China’s currencv'? h} 1What must have happened to |China's reserves of foreign exchange in this
period? Evaluate fl'tis statement: “Since current account deficits, by definition, increase a
country's net foreign liahflities, the},r should he avoided and all countries should seek to achieve a current account surplus".

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SuperTutor
(15)
Status NEW Posted 05 Jun 2017 06:06 AM My Price 4.00

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