Show (using credit/debit tables) how each of the following would affect the U.S. BOP. Include a description
Question:
Show (using credit/debit tables) how each of the following would affect the U.S. BOP. Include a description of the transaction being recorded, which specific account is affected (e.g., exports [EX], home financial account assets and the accompanying credit/debit entry.
a. A U.S. airplane manufacturer imports $600,000 in parts from a Canadian firm. It uses a U.S. bank account to pay for the parts.
b. The Bank of England (U.K. central bank) buys $2 million in U.S. Treasury bonds from an American securities firm.
c. An Italian tourist charges $400 to his MasterCard (issued by an Italian bank) for a hotel room in New York City.
d. A Chinese catering company purchases $30,000 in helium tanks from a U.S. welding firm. The Chinese catering company uses deposits from a bank in China.
e. A French firm forgives a $250,000 loan to an oil refinery located in Louisiana following a hurricane.
f. The United States donates $8 million in medical and food supplies to Lebanon following a month-long war.
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