Can someone help me with this Multiple Choice question please?

[JasonTruong1606]

Can someone please help me understand how the answer is 500bn?

[Fergus6748]

Can someone please help me understand how the answer is 500bn?

So you have to look at the whole BOP:

BOP = 0
BOP = Current Account + Capital and Financial Account + Net errors and emissions (this isn't included in this particular question, so don't worry about it)
Current Account = (Exports - Imports) + Net Services + Net Primary Income + Net Secondary Income
 = X - 700 + 100 + (-150) + 50
Capital and Financial Account = 200
0 = ((X - 700) + 100 + (-150) + 50) + 200
0 = X - 500
X = $500bn

Hope this helps!!

[JasonTruong1606]

So you have to look at the whole BOP:

BOP = 0
BOP = Current Account + Capital and Financial Account + Net errors and emissions (this isn't included in this particular question, so don't worry about it)
Current Account = (Exports - Imports) + Net Services + Net Primary Income + Net Secondary Income
 = X - 700 + 100 + (-150) + 50
Capital and Financial Account = 200
0 = ((X - 700) + 100 + (-150) + 50) + 200
0 = X - 500
X = $500bn

Hope this helps!!

Thank you so much!!