I know this has been covered in numbers, but I can’t remember my answer. Does the current account include the tourism spending in USA? I looked through the CFAI text and there are 2 chapters that discuss BOP calcs but only one sentence with the term tourism. I thought it was just exported goods/services minus imported goods/services plus investment income plus unilateral transfers. So do you include the tourism number from the question?
Yes I included that number and got the consensus answer… 3.9
^^ Agreed.
Well that is a pure guess so far as the study material is considered. Both the answers were there. I mean 3.0 & 3.9. Though i selected 3.9 myself.
I feel tourism has to be in current account. All activities except financial investments one, should be in current account balance. I chose 2 factors while calculating for Financial Accounts and remaining factors for current account.
“I chose 2 factors while calculating for Financial Accounts and remaining factors for current account” … me too… if this is correct then it’s +2 for us both
current account is analogous to cash flow from operations, which includes tourism. capital balance is analogous to cash flow from financing.