Help with BOP calculation question? (1 Viewer)

luo_ge

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i'm not sure on how to do calculations regarding BOP

Screen Shot 2017-02-08 at 3.39.38 pm.png
 

BenHowe

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Hey,

Since the economy has a floating exchange rate the formula CA+KAFA=0 applies.

So you just need to find the totals for the CA and KAFA and then solve for the unknown.

For CA: +12,-5, NPI,-2=5+NPI

For KAFA: +45

Therefore 5+NPI+45=0, NPI+50=0, so NPI=-50 note all calcs in bn therefore the answer is -50bn so (B)
 

luo_ge

Member
Joined
Sep 26, 2016
Messages
60
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HSC
2016
Hey,

Since the economy has a floating exchange rate the formula CA+KAFA=0 applies.

So you just need to find the totals for the CA and KAFA and then solve for the unknown.

For CA: +12,-5, NPI,-2=5+NPI

For KAFA: +45

Therefore 5+NPI+45=0, NPI+50=0, so NPI=-50 note all calcs in bn therefore the answer is -50bn so (B)
thanks your working out helped me understand
 

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