(Answered) Given below is information on all of the entries in balance

Management Studies

Given below is information on all of the entries in Balance of Payments of a hypothetical developing country: Commodity exports = $28 million Debt service payments = $1 million Remittances from abroad = $2 million Commodity imports = $34 million Private FDI inflow = $0.5 million Investment income = $1 million Based on this information, answer the following questions:

a. What is the value of current account balance?

b. What is the value of capital account balance?

c. What is the value of cash reserve account?

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Business Management, Management Studies

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