Econ BOP questions :

Econ BOP questions : Was answer to one of the BOP questions 4.2 ? I struggled between 3.9 and 4.2 and chose 4.2 I knew it is 3+.3 + … no .6 found, so i added .9 any one ?

this is what I remember about #1 (I’m pretty sure #2 was 1.9) Components that I included: Exports (Imports) Investment income from abroad (Investment income sent abroad) Tourist spending Foreign Aid I think those were it… don’t remember the #'s but I remember their being 2 options that I was wavering between and the differance was including vs not including Foreign Aid.

3.9 for this question and 1.9 for the other

sbugrad89 Wrote: ------------------------------------------------------- > 3.9 for this question and 1.9 for the other sounds right

I think I flubbed these. It irks me because I reviewed it briefly and remember saying to myself “self, treat these like a CF statement. CFO – C account, CFI – F account” Of course I didn’t remember that during the battle. Anyway, my question is this, if anyone has any thoughts: If you have two diff countries and you are asked to calc the F account for country B, you knew that had to include +domestic inv by foreign - foreign inv by domestic… wasn’t that net a choice? were any other choices really viable? Then if you go back and look how to calc the C account for country A… wouldn’t that have to include everything else listed since none of them hit the reserve account?? That was a choice. Did those guesses get you close to either?

I think I messed this up. Interest and foreign aid is included in C account, but I also factored in dividends, which i’m not sure about. Actually looked this up in CFAI books and the answer was not clear (imagine that!).

I think the possible screw-ups for those trying to just common sense it were considering “Investment Income” and “Foreign Aid” as FI.

akanska Wrote: ------------------------------------------------------- > I think the possible screw-ups for those trying to > just common sense it were considering “Investment > Income” and “Foreign Aid” as FI. OK. For country B I recall boxing in the given numbers for domestic inv by foreign and foreign inv by domestic… the net of these was a choice. Then I looked at the other choices to see what the difference was. I don’t remember any of them making sense. So I think I just went with this net. (If you think any of the other choices looked enticing, i.e. they included foreign aid, well then I could be wrong in my recollection.) Then with those two numbers crossed off as F, I went back to the prev q and just included everything else. So, for me, my guesses hinge on whether or not the given choices for country B’s F account appeared attractive enough to make me add something there other than that net, or if something else should not have been included in the C account. eh -2 most likely.

I think if you started w/ B and put down 1.9 (including only net foreign inv) and summed all other options (as long as you kept your +/- straight) you are golden. There was nothing in country a that woulf go to reserve acct and there were only the 2 that would be components for FA. All the others were CA. maybe +2 4 U :slight_smile:

interesting. Thank you for clearing up what belonged where / how to get to the F and C numbers. I can’t recall for sure if that is the way I went, but I do remember working backwards with that process. I’ll keep those in the uncertain column. **hope**