1.Show how each of the following would affect the U.S. balance of payments. Include a description of the debit and credit items, and in each case identity which specific account is affected (e.g., imports of goods and services, IM; exports of assets, EXA; and so on.

a.A California computer manufacturer purchases a $50 hard disk from a Malaysian company, paying the funds from a bank account in Malaysia.

b.A U.S. tourist to Japan sells his iPod to a local resident for yen worth $100.

c.The U.S. central bank purchases $500 million worth of U.S. Treasury bonds from a British financial firm and sells pound sterling foreign reserves.

d.A. U.S. owner of Sony shares receives $10,000 in dividend payments, which are paid into to Tokyo bank.

e.The central bank of China purchases $1 million of export earnings from a firm that has sold $1 million of toys to the United States, and the central bank holds these dollars as reserves.

f.The U.S. government forgives a $50 million debt owed by a developing country.