Write a concise “essay” on one of the following two questions. Remember that an “essay”...

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Write a concise “essay” on one of the following two questions. Remember that an “essay” requires - at the very least - three parts, consisting of an introduction, which should specify the...

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Write a concise “essay” on

one

of the following two questions. Remember that an “essay” requires - at the very least - three parts, consisting of an introduction, which should specify the question you are investigating. “Middle” paragraphs, which set forth the reasons the subject is important and evidence on the issue.

This is international eco & fin course

The United States continues to have the largest external debt in the world. It stood at $26.5 trillion in March 2024. This sum was 91% of its GDP. One can further recognize its magnitude by noting that the next 2 largest external deficits were: the U.K at $10 trillion and France at $8 trillion, both as of June 2024

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What are the current and capital accounts where this debt occurs? What is a deficit on these accounts? Is such a deficit a problem? Why or why not? Discuss the issues involved

Answered Same Day Dec 17, 2024

Dilpreet · Accepted Answer

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Title: Understanding the Debt of USA and Current and Capital Account Deficit 
Understanding External Debt and Current and Capital Account Deficit 
	The external debt of United States was reported to be $26.5 trillion dollars by March 2024, and this accounted to be 91% of the GDP of the country. This reflects the dependency of US on the foreign capital for financing its economy. External debt refers to the obligations to foreign creditors and is reflected through the transactions recorded in the balance of payment under the current and capital accounts. This essay has been written with a purpose to examine the nature of deficits in these accounts. 
Current and Capital Accounts in the Balance of Payment 
	The economic transactions of a country with other countries across the globe is comprehensively recorded in the balance of payments and this is further bifurcated into:
Current Account:

Write a concise “essay” on one of the following two questions. Remember that an “essay” requires - at the very least - three parts, consisting of an introduction, which should specify the...

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