Q&A Bank Part-3 Q3A.19

Discussion in 'CT7' started by paryas.bhatia, Sep 25, 2014.

  1. paryas.bhatia

    paryas.bhatia Member

    How is part (v) calculated? How does surplus of 8200 turn deficit?
     
  2. Charlie

    Charlie Member

    It says in the solutions that the current account, capital account, financial account and net errors and omissions must sum to zero.

    Current account = +8,200
    Capital account = 0
    Financial account = ?
    Net errors and omissions = +20

    So the financial account must be -8,220.

    The difference between this and part (iv) is the change in reserves (which is included in the financial account) and this is what part (vi) is all about.
     

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