For each of the following, identify in which part of the UK Balance of Payments account it

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For each of the following, identify in which part of the UK Balance of Payments account it appears (current account, capital account or net change in international reserves) and whether it is a receipt or a payment.

(a) An American subject’s purchase of a share of Vodafone shares

(b) A British subject’s purchase of an airline ticket from British Airways

(c) The Swiss government’s purchase of UK government bonds

(d) A Japanese’s purchase of British pies

(e) £50 million of foreign aid to Honduras

(f) A loan by a British bank to Mexico

(g) A British bank’s borrowing of Eurodollars

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The Economics Of Money, Banking & Financial Markets

ISBN: 126161

1st Edition

Authors: Massimo Giuliodori, Frederic S. Mishkin Kent Matthews

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