BOP questions

CFA Level II
#1

so what were the answers, after all of that?

#2

CA 3.9

#3

i think the financial account one was 1.9

#4

and current account I think 3.3 but can’t remember exactly

#5

do you borrow country B currency spot and sell country B currency forward? also should buy product I and III? i am so fu…cked on this question.

#6

i got I and III too

#7

1 and 3 for me too

#8

I put 2 and 4. I may have done that question completely wrong, but I converted all prices to B’s local currency. then whichever were lower (2 and 4) I figured they would import

#9

agree lance

#10

and yeah it was borrow usd sell country b fwd

#11

lanceTX - I did the same thing too. After convesrion it was cheaper for the country to import from the US given the 5.5 LC = 1 USD exchange rate

#12

2 and 4, borrow USD sell B fwd.

#13

Got 2 & 4. Sell future currency B

#14

i also said to buy 2 and 4. 2 was def. cheaper in US, and 4 was little more expensive, but only 1 that would’ve worked (assuming rate of like 5.8)

#15

just to round it off… 2.55 discount usd to country c, and down ca up fa given raise in economic activity?

#16

wait, it asks to import from US or import into US? SHOOT.

#17

Import into Country B, 100% sure. Don’t remember any other part of that question

#18

i bombed this item set. at least 4 are wrong now… ready to shoot myself.

#19

You borrow in Country B and then sell Country B forward is what I put

#20

Was the current account/financial account a surplus or deficit if the country growth is higher than trading partners?