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Butoxors [25]
3 years ago
6

Suppose the balance on the current account is +$50 billion and the balance on the capital account is +$1 billion. The balance on

the financial account is
Business
1 answer:
Colt1911 [192]3 years ago
7 0

Answer:

-$49 billion

Explanation:

The balance on the financial account = capital account balance - current account balance = $1 billion - $50 billion = -$49 billion

The balance of payments (BOP) = current account balance + financial account balance + capital account balance

since BOP is always $0, then:

capital account balance = current account balance + financial account balance

$1 billion = $50 billion - $49 billion

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