Final answer:
To calculate the Financial Account Balance, given a Current Account Balance of -$3600 and a Capital Account Balance of $0.80,
it must offset the sum of the other two accounts to maintain equilibrium.
Therefore, the Financial Account Balance must be $3599.20.
Step-by-step explanation:
The subject of this question is Business, specifically focusing on the Balance of Payments (BOP). In the BOP, the sum of the Current Account Balance, Capital Account Balance, and the Financial Account Balance should equal zero, assuming there are no errors or omissions. Given that the Current Account Balance is $-3600 and the Capital Account Balance is $0.80, the Financial Account Balance must be the amount that makes the sum zero.
To determine the Financial Account Balance: Financial Account Balance = - (Current Account Balance + Capital Account Balance). Therefore, Financial Account Balance = - (-$3600 + $0.80) = $3599.20.
Applying the information given, the Financial Account Balance for the country in question must be $3599.20. When dealing with BOP data, understanding the concept of trade balance, which is the difference between exports and imports, is crucial as it factors into the Current Account along with the international flows of money from global investments.