1. a. For each of the following transactions indicate (a) on which account the debit occurs, and (b) on which account the credit occurs. Your choices are current account (distinguish between merchandise, services and unilateral transfers}, the capital account (RA). and ofcial reserve transactions {GET}. For the EA and l[IrRT accounts also indicate whether there is a decrease or increase in US external assets or US external liabilities. The dollar value of all transactions is 130. The US is always the domestic country. Iii) {ii} (iii) (iv) (1') (Ti) (vii) [viii] UK) A US commercial bank makes a loan to a Japanese company and credits the account of the Japanese company. The US central bank receives interest in Euros on a European govermnent bond. A US importer buys goods from Australia and receives a SID-day trade credit. The Red Cross in the United States sends yen to victims of a large earthquake in Japan. The US government pays interest in dollars on bonds held by a European investor. A US exporter sells goods to Europe and is paid through a European bank account. A US firm builds a factory in Mexico. pays for the inputs (land. local labor. etc.) in pesos. Foreign tourists spend dollars in the US. A US company pays a Greek shipping company for transportation services through a Euro bank account that the US company has in Frankfurt. b. For each of the 9 transactions above report AC'A. AKA, AURT (the change in the current account, capital account and l[l'iFLT account). Add up these changes (across all 9 transactions). report AC'A. AKA, AURT due to the sum of these transactions and make sure that these the three accounts add up to zero