Use the following information to answer the next three questions. Transactions between New Zealand and the rest...

80.2K

Verified Solution

Question

Finance

Use the following information to answer the next threequestions.
Transactions between New Zealand and the rest of the world in2018 are shown below.
New Zealand companies bought NZ$40 million worth of steel fromUS companies.
New Zealand's central bank sold NZ$25 million of treasury bondsto foreign investors.
New Zealand investors received NZ$2 million in interestpayments from foreign investments.
New Zealand citizens purchased NZ$11 million worth of computersproduced in Japan.
Americans spent NZ$20 million touring New Zealand.
JKL (New Zealand firm) purchased NZ$4 million in stock issuedby a Brazilian firm.
The New Zealand central bank sold NZ$8 million worth of USdollars.
Find the capital account balance in terms of millions of NewZealand dollars.
Find the balance of trade in terms of millions of New Zealanddollars. Do not use currency symbols or words when entering yourresponse.
Find the current account balance in terms of millions of NewZealand dollars.

Answer & Explanation Solved by verified expert

4.3 Ratings (929 Votes)

Ans a Capital account is a type of account which records all the transactions which affect the assets and liabilities in a particular period of the country So as per the question the capital account balance in terms of New Zealand dollars will be i New Zealands central banks sold 25 million of treasury bonds to the foreign investor ii JKL New Zeland See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Use the following information to answer the next threequestions.Transactions between New Zealand and the rest of the world in2018 are shown below.New Zealand companies bought NZ$40 million worth of steel fromUS companies.New Zealand's central bank sold NZ$25 million of treasury bondsto foreign investors.New Zealand investors received NZ$2 million in interestpayments from foreign investments.New Zealand citizens purchased NZ$11 million worth of computersproduced in Japan.Americans spent NZ$20 million touring New Zealand.JKL (New Zealand firm) purchased NZ$4 million in stock issuedby a Brazilian firm.The New Zealand central bank sold NZ$8 million worth of USdollars.Find the capital account balance in terms of millions of NewZealand dollars.Find the balance of trade in terms of millions of New Zealanddollars. Do not use currency symbols or words when entering yourresponse.Find the current account balance in terms of millions of NewZealand dollars.