--%>
Assignment Help - homework help

Current and capital account deficit

 Exhibit 3.3 states that in year 1991, the U.S. had current account deficit and consecutively a capital account deficit. Explain about how this may occur?

E

Expert

Verified

In year 1991, U.S. has experienced an overall BOP deficit that should have been accommodated by Federal Reserve’s official reserve action which means decreasing down its reserve holdings.

   Related Questions in Financial Accounting

  • Q : Uniform costing benefits The uniform

    The uniform costing executed? It is beneficial for an organization?

    		•
  • Q : Costs of hedging through forward

    Discuss and compare the costs of hedging through the forward contract and the options contract.

    		•
  • Q : Avoidable Interest The book says

    The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wonder

    		•
  • Q : Good international monetary system

    Explain criteria for the ‘good’ international monetary system.

    		•
  • Q : Foreign commerce trade State three

    State three basic documents which are essential in order to conduct the typical foreign commerce trade?  Discuss briefly the purpose of each.

    		•
  • Q : Factors considering before investing

    Being an investor, what are all factors you would consider before investing within the emerging stock market of developing country?

    		•
  • Q : Objective Questions on Sociology 1)

    1) Which large European city declined significantly in population over the past century? A) Paris B) London C) Rome D) Madrid 2) The industrial city was characterized b A) decentralization B) corporate growt

    		•
  • Q : Procedure of bringing new international

    Describe the procedure of bringing the new international bond issue to the market.

    		•
  • Q : Whether MNC open their manufactoring

    For most global companies, China symbolizes a very attractive market in terms of size and growth-rate. Yet, it ranks lower in words of economic freedom and higher in political risk than other countries' markets because it has a communist government. Despite such risks

    		•
  • Q : Free international trade in goods and

    Explain, how economic well-being of a country is improved through free international trade in the goods and services?

    		•