1. Explain how eachof the following transactions would enter the Canadian balance of payments accounts Discuss only the transactions described. Do not be concemed with possible offsetting transactions.

a. The Canadian government sells military equip- ‘mentto a foreign government.

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

¢. The Bank of Canada sells yen to, and buys dollars from, a Swiss bank. 4. A Canadian bank receives the interest on its loans to Brazil.

e. A Canadian collector buys some modern art froma collection in Japan.

f. A Canadian oil company buys insurance from Lloyds of London to insure its oil rigs in the Beaufort Sea. g. A Canadian company borrows from a U.S. bank.