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    Hypothetical Balance of Payments for the US

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    The following are hypothetical data for the U.S. balance of payments. Use the data to calculate each of the following:

    a. Merchandise trade balance
    b. Balance of goods and services
    c. Balance of current account
    d. Capital account balance
    e. Statistical discrepancy

    Billions of Dollars
    Merchandise exports 350.0
    Merchandise imports - 425.0
    Service exports 170.0
    Service imports - 145.0
    Net unilateral transfers - 21.5
    Outflow of U.S. capital - 45.0
    Inflow of foreign capital 70.0

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    Solution Preview

    a. Merchandise trade balance = Merchandise exports-Merchandise imports
    <br>= 350.0 - 425.0= -75
    <br>b. Balance of goods and services = ...

    Solution Summary

    Balance of Payments is highlighted.