Economics > CASE STUDY > Midterm+2+Answer+Key (All)
Midterm+2+Answer+Key
Document Content and Description Below
You will be given one hour and twenty minutes to complete this exam. Credit will be given to correct answers only if there are complete explanations. Investors and speculators are currently focused... on the emerging market of India as their engine of growth is slowing to 5% but they continue to amass large amounts of debt. 1. India is facing criticism for spending at unsustainable levels. Various statistics from the year 2012 are reported in US $ bellow. Please use these statistics to answer the following questions. Debt Service Payments $60 billion Foreign Direct Investment $30 billion Goods and Services Imported $46 billion Goods and Services Exported $26 billion Net Investment Income - $9 billion New Loans from Foreign Commercial Banks $24 billion New Loans from Public Sources $2 billion Principal on loans paid to Foreign Commercial Banks $24 billion Remittances and Transfers $58 billion Resident Capital Outflow (Capital Flight) $4 billion Foreign Reserves $295 billion a. What is the Current Account Balance of India in 2012? (Show your work) (6 points) $26 billion - $46 billion - $60 billion - $9 billion + $58 billion = -$31 billion b. What is the Capital Account (Financial Account) Balance of India in 2012? (Show your work) (6 points) $30 billion +$24 billion + $2 billion - $24 billion - $4 billion = $28 billion [Show More]
Last updated: 2 years ago
Preview 1 out of 6 pages
Buy this document to get the full access instantly
Instant Download Access after purchase
Buy NowInstant download
We Accept:
Reviews( 0 )
$10.50
Can't find what you want? Try our AI powered Search
Document information
Connected school, study & course
About the document
Uploaded On
Aug 12, 2021
Number of pages
6
Written in
Additional information
This document has been written for:
Uploaded
Aug 12, 2021
Downloads
0
Views
69
