2. Suppose the following set of transactions represents simplified versions of the U.S. BOP for a given year. Construct a balance sheet placing each entry in its proper row and column (transaction type, credit, debit and net), and calculate the net values for all of the "above the line" transaction. Then indicate the value of: a. the current account balance. b. the Official Settlement Balance (OSB). c. the change in official reserves necessary ("below the line") for overall balance if the system were one of the fixed exchange rates, and d. the direction the exchange rate (e$/FX) would move, if the system were one of the flexible exchange rates. Determine whether the currency is overvalued/undervalued? Transactions (in billions of U.S.$): 1. U.S. exports Ofsoybeans 2. U.S. exports of wheat 3. Income earned on U.S. investment abroad 4. Foreign tourist expenditures in the U.S. 14.3 22.0 5.6 10.2 2. Suppose the following set of transactions represents simplified versions of the U.S. BOP for a given year. Construct a balance sheet placing each entry in its proper row and column (transaction type, credit, debit and net), and calculate the net values for all of the "above the line" transaction. Then indicate the value of: a. the current account balance. b. the Official Settlement Balance (OSB). c. the change in official reserves necessary ("below the line") for overall balance if the system were one of the fixed exchange rates, and d. the direction the exchange rate (e$/FX) would move, if the system were one of the flexible exchange rates. Determine whether the currency is overvalued/undervalued? Transactions (in billions of U.S.$): 1. U.S. exports Ofsoybeans 2. U.S. exports of wheat 3. Income earned on U.S. investment abroad 4. Foreign tourist expenditures in the U.S. 14.3 22.0 5.6 10.2