I went with what Smarshy did. Interest and so on felt like investments so I left that for the Financial account. I went for the regular goods import/exports + tourist spending in the country which was 5.2. Wasn’t sure about the tourists, though, but went for it.
Interest goes to current account, as far as I know. Only the investment in debt, equity and real estate goes to Financial account.
How about the arbitrage question, I borrowed US, sold the forward on currency B.
doworkson Wrote: ------------------------------------------------------- > How about the arbitrage question, I borrowed US, > sold the forward on currency B. Yep
was the PPP question products 1 & 3?
I’m going to call you the answer key, nice, flipping the FX rates slowed me down for a second on which to sell forward. McLeod81 Wrote: ------------------------------------------------------- > doworkson Wrote: > -------------------------------------------------- > ----- > > How about the arbitrage question, I borrowed > US, > > sold the forward on currency B. > > > Yep
dirtydirty Wrote: ------------------------------------------------------- > 16.9 - 12.6 = 4.3 then you have to add in divs and > aid and tourist spending All i remember is after the above substraction you add only .9 spending by tourist = 5.2 (i believe this is the answer). Because after adding aid of .6 it gives you 5.8 which was not a choice at all If I remember correctly. Can any one else recall???
Investment income is a part of the current account.
This is how I reconfirmed - If I took any one component away (especially the aid and dividends), it means you had to add it to the financial account (for the next company). I found that I had to take every item for CA ( except the principal two items for Financial account),…that way there was only one answer set. Unfortunately I do not recall the answers…
mcpass Wrote: ------------------------------------------------------- > I went with what Smarshy did. Interest and so on > felt like investments so I left that for the > Financial account. > > I went for the regular goods import/exports + > tourist spending in the country which was 5.2. > Wasn’t sure about the tourists, though, but went > for it. We are all wrong on this one. Interest and dividend are CA instead of FA. Sorry to be so direct. I got them wrong as well. Why there are 2 questions testing the same topic. I will remember how to calculate CA and FA for the rest of my life.
from wikipedia: The current account is the net change in current assets from trade in goods and services (balance of trade), net factor income (such as dividends and interest payments from abroad), and net unilateral transfers from abroad (such as foreign aid, grants, gifts, etc). FA = invest in assets, Portdolio investmet + other investment
I’ll go with doworkson’s answers.
Damn, I really figured interest would go to FA. I’m really really worse off than I thought.
I am not sure , but CFA cant be so dumb to give two questions where if we get one right we automatically get the other one right , else get both of them wrong. I have an inkling one of them belonged to the official reserve account. does foreign aid go to the official reserve account (forex reserves ?)
I agree with you. I felt really bad this after exam. I did really well on Econ on all the mock and Schweser. And they totally got me on these BOP topic. I actually highlighted the dividend and interest is part of CA in my book. But I seem to make it up on the Porter topics if the consensus are right here. I ususally got 0 zero point on those. We have to see.
Just looked at schweser notes - CA also includes gift aid. I got it wrong! I had 5.2 or 5.3
eros79 Wrote: ------------------------------------------------------- > I am not sure , but CFA cant be so dumb to give > two questions where if we get one right we > automatically get the other one right , else get > both of them wrong. I have an inkling one of them > belonged to the official reserve account. does > foreign aid go to the official reserve account > (forex reserves ?) The second question was in regards to Country B, right? So you wouldn’t necessarily get it wrong if you got the first one wrong. That being said, if you don’t know how to calc the current account - like me - then you probably weren’t that sure on the capital account either.
what am i missing here: #1 was Curr. Acct, 2 was Financial acct, we had one about arbitrage, a fourth about what contry D would import. What were 5 and 6?
moregreat Wrote: ------------------------------------------------------- > dirtydirty Wrote: > -------------------------------------------------- > ----- > > 16.9 - 12.6 = 4.3 then you have to add in divs > and > > aid and tourist spending > > > All i remember is after the above substraction you > add only .9 spending by tourist = 5.2 (i believe > this is the answer). Because after adding aid of > .6 it gives you 5.8 which was not a choice at all > If I remember correctly. > > Can any one else recall??? This is what I got…5.2. I remember I was waffling on whether or not it was JUST imports - exports, but then added that 0.9 in at the end. I am PRAYING this is the answer, cuz I’m pretty sure I f*cked up the one where the current account has to offset the financial. I f*cking KNEW THIS, but for some reason put that they would BOTH go up. F@CK!
If you guys did the Boston BSAS exam you would have gotten this question right