1. The economy of Delloro has experienced a current account deficit (CAD) of $5 billion. This has been calculated as follows:

a) BOMT: 200-150 = 50

b) Net Services: 150-80 = 70

c) NPI: 40 – 170 = -130

d) NSI: 15-10 = 5

e) Current Account = 50 + 70-130+5= -5

2. Given that the CAD was $5 billion it means that the CAFA must be a surplus of $5 billion.

3. The CAFA has a surplus of $5 billion because the overall balance of payments must equal zero.