1. Suppose that. the following transactions take place on the US. balance of payments during a given year. Analyze the effects on the merchandise trade balance, the international investment income account, the current account, the capital account, and the ofcial settlements account. a a. Boeing, a US. aerospace company, sells $3000 million of its 747 airplanes to the Chinese government, which pays with proceeds from a loan in dollars it obtains from a consortium of international banks. 0 b. l\\-*litsubishi UFJ Financial Group purchases $70 million of 30year US. Treasury bonds for one of its Japanese clients. Mitsubishi draws down its dollar account with Bank of America to pay for the bonds. 0 c. Eli Lilly, a US. pharmaceutical company, sends a dividend check for $25,255 to a Canadian investor in Toronto. The Canadian investor deposits the check in a US. dollardenorrlinated bank account at the Bank of Montreal. 0 d. The US. TreaSury authorizes the New York Federal Reserve Bank to intervene in the foreign exchange market. The New York Fed purchases $5000 million with Japanese yen and euros that it was holding as international reserves. 0 e. The president of the United States sends troops into a Latin American country to establish a democratic government. The total Operation has a very high costs for the US. taxpayers. To show their support for the operation, the governments of Mexico and Brazil each donate $1000 million to the United States, which they raise by selling U.S. Treasury bonds that they were holding as international reserves. 0 f. Honda of America, the US. subsidiary of the Japanese automo bile manufacturer, obtains $275 million from its parent company in Japan. The Japanese parent cornpany had deposited this money in a US bank and uses it to offer a loan to the U.S. subsidiary to enable it to construct a new stateoftheart manufacturing facility in Ohio