1. Explain how each of the following transactions will be classified and recorded in the debit and credit of the U.S. balance of payments:

(a) A Japanese insurance company purchases U.S. Treasury bonds at the U.S. government auction (primary market transaction) and pays out of its bank account kept in New York City.

(b) A U.S. citizen consumes a meal at a restaurant in Paris and pays with her American Express card.

(c) A legal Indian immigrant living in Los Angeles sends a check drawn on his L.A. bank account as a gift to his parents living in Bombay.

(d) A U.S. computer programmer is hired by a British company for consulting and gets paid from the U.S. bank account maintained by the British company.