|Question||Practice with the balance of payments:
Current account = Capital account + Change in official reserves
a. Current account = 2$10, Capital account = $15. What is the change in reserves?
b. Current account = 2$10, Change in reserves = 2$3. What is the capital account?
c. Your college expenses = $12,000, Income from your barista job = $4,000.
What is your current account? If you haven’t changed your reserves (i.e., cash savings) at all, what is the capital account (i.e., borrowing from parents or bank)?