3.3 The balance of payments

Using an exchange rate diagram, explain how South Korea’s current account surplus could have “helped increase the South Korean won’s value” (paragraph [2]).

Using an exchange rate diagram, explain how South Korea’s current account surplus could have “helped increase the South Korean won’s value” (paragraph [2]).

Using an exchange rate diagram, explain how South Korea’s current account surplus could have “helped increase the South Korean won’s value” (paragraph [2]).

List two components of the financial account (paragraph [4]).

List two components of the financial account (paragraph [4]).

List two components of the financial account (paragraph [4]).

Using information from the text/data and your knowledge of economics, discuss the possible implications on South Korea’s economy of a current account surplus.

Using information from the text/data and your knowledge of economics, discuss the possible implications on South Korea’s economy of a current account surplus.

Using information from the text/data and your knowledge of economics, discuss the possible implications on South Korea’s economy of a current account surplus.

Define the term current account indicated in bold in the text (paragraph [1]).

Define the term current account indicated in bold in the text (paragraph [1]).

Define the term current account indicated in bold in the text (paragraph [1]).

Using the information in Table 5, calculate the financial account balance.

Using the information in Table 5, calculate the financial account balance.

Using the information in Table 5, calculate the financial account balance.

Calculate the value of V (exports of services) for Urbania in 2017.

Calculate the value of V (exports of services) for Urbania in 2017.

Calculate the value of V (exports of services) for Urbania in 2017.

Using your answer to part (g)(i), calculate the value of W (reserve assets) in Table 5.

Using your answer to part (g)(i), calculate the value of W (reserve assets) in Table 5.

Using your answer to part (g)(i), calculate the value of W (reserve assets) in Table 5.

Using your answer to part (g)(ii), describe how the level of reserve assets in Urbania changed by the end of 2017.

Using your answer to part (g)(ii), describe how the level of reserve assets in Urbania changed by the end of 2017.

Using your answer to part (g)(ii), describe how the level of reserve assets in Urbania changed by the end of 2017.

Explain how a depreciation of the Urbanian dollar ($) might result in a J-curve effect.

Explain how a depreciation of the Urbanian dollar ($) might result in a J-curve effect.

Explain how a depreciation of the Urbanian dollar ($) might result in a J-curve effect.

Explain the difference between a current account deficit and a budget deficit (paragraph [5]).

Explain the difference between a current account deficit and a budget deficit (paragraph [5]).

Explain the difference between a current account deficit and a budget deficit (paragraph [5]).

Using information from the text/data and your knowledge of economics, discuss the effects of the increasing current account deficit on Pakistan’s economy.

Using information from the text/data and your knowledge of economics, discuss the effects of the increasing current account deficit on Pakistan’s economy.

Using information from the text/data and your knowledge of economics, discuss the effects of the increasing current account deficit on Pakistan’s economy.

Determine the size of Gardia’s current account surplus/deficit when the sum of the financial and capital accounts is US$ 2 billion.

Determine the size of Gardia’s current account surplus/deficit when the sum of the financial and capital accounts is US$ 2 billion.

Determine the size of Gardia’s current account surplus/deficit when the sum of the financial and capital accounts is US$ 2 billion.

Define the term current account deficit indicated in bold in the text (paragraph [4]).

Define the term current account deficit indicated in bold in the text (paragraph [4]).

Define the term current account deficit indicated in bold in the text (paragraph [4]).

State two factors that could cause Gardia’s current account to be in deficit, even though its balance of trade in goods is in surplus.

State two factors that could cause Gardia’s current account to be in deficit, even though its balance of trade in goods is in surplus.

State two factors that could cause Gardia’s current account to be in deficit, even though its balance of trade in goods is in surplus.

Using information from the text/data and your knowledge of economics, discuss the implications of Turkey’s persistent current account deficit.

Using information from the text/data and your knowledge of economics, discuss the implications of Turkey’s persistent current account deficit.

Using information from the text/data and your knowledge of economics, discuss the implications of Turkey’s persistent current account deficit.

Define the term current account indicated in bold in the text (paragraph [6]).

Define the term current account indicated in bold in the text (paragraph [6]).

Define the term current account indicated in bold in the text (paragraph [6]).

Using price elasticity of demand (PED) data from the text and the J-curve effect, explain the most likely impact of “the falling value of the Australian dollar” on Australia’s current account (paragraph [4]).

Using price elasticity of demand (PED) data from the text and the J-curve effect, explain the most likely impact of “the falling value of the Australian dollar” on Australia’s current account (paragraph [4]).

Using price elasticity of demand (PED) data from the text and the J-curve effect, explain the most likely impact of “the falling value of the Australian dollar” on Australia’s current account (paragraph [4]).