ECN 306: Final - Douglas ASU Questions
with Solved Solutions 2026/2027.
Current account - Answer Primarily tracks the flow of goods and services between a country
and the rest of the world
Capital account - Answer the smallest of the three accounts and records transfers of
specialized capital assets between countries
financial account - Answer the record of all financial transactions between a country and the
rest of the world
current account balance three components: - Answer trade balance, primary income,
secondary income
trade balance - Answer difference between exports and imports of goods and services
primary income - Answer income received from abroad minus income paid abroad
secondary income - Answer transfers made abroad minus transfers received abroad
goods and services credits - Answer exports
goods and services debits - Answer imports
primary income credits - Answer -investment income received from foreigners
-compensation of employees at home received from foreign firms
primary income debits - Answer -investment income paid to foreigners
-compensation of foreign employees abroad paid by domestic firms
secondary income credits - Answer transfers received from abroad
secondary income debits - Answer transfers paid abroad
Current account balance - Answer difference between credits and debits
, Two components of primary income - Answer 1. investment earnings received and paid
2. wages and salaries received from abroad or paid abroad
remittances - Answer part of wages or other income that individuals transfer to families and
friends living outside the country
goods and services exports - Answer goods exports + services exports (credit)
primary income receipts - Answer investment income received + compensation of employees
received (credit)
secondary income receipts - Answer on its own (credit)
goods and services imports - Answer goods imports + services imports (debit)
primary income paid - Answer investment income paid + compensation of employees paid
(debit)
Secondary income payments - Answer On its own (debit)
current account balance formula - Answer (goods and services exports + primary income
receipts + secondary income receipts) - (Goods and services imports + primary income paid +
secondary income payments)
financial account - Answer a record of financial flows between countries
financial flows represent... - Answer purchase of foreign assets by home country residents
AND the sale of home country assets to foreign residents
Three main accounting categories for financial account - Answer 1. net acquisition of financial
assets
2. net incurrence of financial liabilities
3. changes in financial derivatives
net acquisition of financial assets - Answer -purchases of foreign financial assets
with Solved Solutions 2026/2027.
Current account - Answer Primarily tracks the flow of goods and services between a country
and the rest of the world
Capital account - Answer the smallest of the three accounts and records transfers of
specialized capital assets between countries
financial account - Answer the record of all financial transactions between a country and the
rest of the world
current account balance three components: - Answer trade balance, primary income,
secondary income
trade balance - Answer difference between exports and imports of goods and services
primary income - Answer income received from abroad minus income paid abroad
secondary income - Answer transfers made abroad minus transfers received abroad
goods and services credits - Answer exports
goods and services debits - Answer imports
primary income credits - Answer -investment income received from foreigners
-compensation of employees at home received from foreign firms
primary income debits - Answer -investment income paid to foreigners
-compensation of foreign employees abroad paid by domestic firms
secondary income credits - Answer transfers received from abroad
secondary income debits - Answer transfers paid abroad
Current account balance - Answer difference between credits and debits
, Two components of primary income - Answer 1. investment earnings received and paid
2. wages and salaries received from abroad or paid abroad
remittances - Answer part of wages or other income that individuals transfer to families and
friends living outside the country
goods and services exports - Answer goods exports + services exports (credit)
primary income receipts - Answer investment income received + compensation of employees
received (credit)
secondary income receipts - Answer on its own (credit)
goods and services imports - Answer goods imports + services imports (debit)
primary income paid - Answer investment income paid + compensation of employees paid
(debit)
Secondary income payments - Answer On its own (debit)
current account balance formula - Answer (goods and services exports + primary income
receipts + secondary income receipts) - (Goods and services imports + primary income paid +
secondary income payments)
financial account - Answer a record of financial flows between countries
financial flows represent... - Answer purchase of foreign assets by home country residents
AND the sale of home country assets to foreign residents
Three main accounting categories for financial account - Answer 1. net acquisition of financial
assets
2. net incurrence of financial liabilities
3. changes in financial derivatives
net acquisition of financial assets - Answer -purchases of foreign financial assets
