Paf is a small country. Its currency is the pif, and the exchange rate with the United

Question:

Paf is a small country. Its currency is the pif, and the with the United States dollar is 0.9 pifs per dollar. Following are some of the transactions affecting Paf s balance of payments during the quarter:
■ Paf exports 10 million pifs of local products.
■ Paf investors buy foreign companies for a total cost of $3 million.
■ Paf investors receive $0.1 million of dividends on their foreign shares.
■ Many tourists visit Paf and spend $0.5 million.
■ Paf pays 1 million pifs as interest on Paf bonds currently held by foreigners.
■ Paf imports $7 million of foreign goods.
■ Paf receives $0.3 million as foreign aid.
Illustrate how the preceding transactions would affect Paf's balance of payments for the quarter, including the current account, the financial account, and the official reserves account Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...