Current Account Deficit: Causes and Implications

Exchange Rates: Impact of a current account deficit

Current Account Deficit

Answer the Following Question. Define

The nation of Pecunia had a current account deficit of 1 billion and a nonreserve financial account surplus of 500 million in 2017 . a. What was the balance of payments of Pecunia in that year? What happened to the country's net foreign assets? b. Assume that foreign central banks neither buy nor sell Pecunian assets. How did the Pecunian central bank's foreign reserves change in 2017 ? How would this official intervention show up in the balance of payments accounts of Pecunia? c. How would yo