-The data in the table above illustrates items from the U.S. balance of payments accounts. What is the capital and financial account balance?
A) $0
B) $150 billion
C) -$350 billion
D) -$150 billion

Question

-The data in the table above illustrates items from the U.S. balance of payments accounts. What is the capital and financial account balance?
A) $0 
B) $150 billion 
C) -$350 billion 
D) -$150 billion

Quizplus · Accepted Answer

The capital and financial account balance is calculated by summing the capital transfers, net acquisition of financial assets, and net incurrence of liabilities. If the data shows more liabilities incurred or assets sold than assets acquired or capital transferred to the U.S., the balance would be negative. A negative balance indicates more capital outflow than inflow, hence -$150 billion is the correct answer if the data supports this calculation.

-The Data in the Table Above Illustrates Items from the U.S