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3 years ago

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks

1 answer:

7 0

<h2>The following are the reasons for how a country could have a deficit on its primary income but a current account surplus:</h2>

The identified and associated sources of primary income would be different than the sources of financial activities that reflect their collection in the current account.
The expenses on developmental activities could be drawn from the primary account rather than drawing them directly from the current account.
There could be diversions of funds to manage the accounts in order to earn interest on them.

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Suppose that $1 lottery tickets have the following probabilities and values: 1 in 5 to win a free ticket (worth $1), 1 in 100 to

Fantom [35]

Answer:

$0.36

Explanation:

Expected value of the lottery ticket = (p1 x a1) + (p2 x a2) + (p3 x a3) + (p4 x a4)

p1 = probability of winning $1 = 1/5 = 0.2

a1 = $1

p2 = probability of winning $5 = 1/100 = 0.01

a2 = $5

p3 = probability of winning $1000 = 1/100,000 = 0.00001

a3 = $1000

p4 = probability of winning $1 million = 1/10,000,000 = 0.0000001

a4 = $1 million

(0.2 x 1) + (0.01 x 5) + (0.00001 x 1000) + (1,000,000 x 0.00001) = $0.36

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2 years ago

The consumer price index is used toGroup of answer choicesturn dollar figures into meaningful measures of purchasing power.chara

jenyasd209 [6]

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2 years ago

If the Fed increases the discount rate, which of the following accurately describes the sequence of events that will follow in t

AnnZ [28]

Answer: A. Reserves ↓: Excess reserves ↓; Loans ↓; Deposits ↓; Money supply ↓

Explanation:

The discount rate is the rate at which the Fed lends money to banks and other depository type institutions. Normally banks have a reserve requirement that the Fed requires of them which states how much they are to leave with the Fed as a reserve. Banks tend to fall short of this reserve sometimes and so can borrow from the Fed to balance it off.

If the Fed increase the rate at which these banks can borrow, they will not want to do so thus leaving their Reserves at the Fed lower than it should be. They will then use their excess reserves which is money kept in reserve more than the Fed requires, to balance off their reserve at the Fed.

As a result of this reduction in their Excess reserve, they will have less money to give out as loans. With less loans being made, people will not have as much money to deposit after taking the loans. Money supply will then fall as a whole.

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3 years ago

While on a trip to South Africa, Elena was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbr

iren2701 [21]

Answer:

Before starting her import business, Elena should try to gather relevant information from companies that import goods, and if possible information about companies that import African goods.

Explanation:

Elena might be right about American consumers liking African products, but if importing those goods is too difficult, or is subject to several trade barriers, or some other issues, then Elena might have to reconsider her idea. Sometimes no matter how good a business idea is, if it is impractical to carry out, then t is useless.

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3 years ago

What do you know about the company/organization you wish to work for?

Masja [62]

Explanation:

Financial health of the company.

Company's brand value.

Work culture and environment.

wages and salary ofc

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2 years ago

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks​

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks