Subjects economics

Balance Payments 530Be0

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1. **Problem statement:** Calculate the current account balance, capital and financial account balance, and overall balance of payments for Nyagahandagaza Country given the transactions. 2. **Formulas and definitions:** - Current Account Balance (CAB) = (Exports of goods + Exports of services + Income received) - (Imports of goods + Imports of services + Income paid) - Capital and Financial Account Balance (KFAB) = Foreign direct investment into country - Country's investment abroad + Change in official reserve assets - Overall Balance of Payments (BOP) = CAB + KFAB 3. **Calculate Current Account Balance:** $$\text{CAB} = (120 + 30 + 15) - (100 + 20 + 10)$$ $$= 165 - 130$$ $$= 35$$ million 4. **Calculate Capital and Financial Account Balance:** $$\text{KFAB} = 25 - 10 + 5$$ $$= 20$$ million 5. **Calculate Overall Balance of Payments:** $$\text{BOP} = 35 + 20$$ $$= 55$$ million **Final answers:** - Current Account Balance = 35 million - Capital and Financial Account Balance = 20 million - Overall Balance of Payments = 55 million