1. Explain how each of the following transactions would enter the U.S. balance of payments accounts. Discuss only the transactions described. Do not be concerned with possible offsetting transactions.

a. The U.S. government sells F–16 fighter planes to a foreign government.

b. A London bank sells yen to and buys dollars from a Swiss bank.

c. The Federal Reserve sells yen to and buys dollars from a Swiss bank.

d. A New York bank receives the interest on its loans to Brazil.

e. A U.S. collector buys some ancient artifacts from a collection in Egypt.

f. A U.S. oil company buys insurance from a Canadian insurance company to insure its oil rigs in the Gulf of Mexico.

g. A U.S. company borrows from a British bank.