Answered step by step
Verified Expert Solution
Question
1 Approved Answer
21. Use the following table to answer the questions below. Assume that these are all the activities in the U.S. for a given year.
21. Use the following table to answer the questions below. Assume that these are all the activities in the U.S. for a given year. For some items, the values may be added to more than one account within the balance of payments. For financial transactions, also include one year's worth of interest earned. Activity A Ukrainian investor purchases S6000 worth of United States treasury bonds, which pay 4.5 % interest per year Nintendo, which is headquartered in Japan, builds a production facility in Sacramento, CA for $300,000 United States consumers purchase $150,000 worth of Beefeater gin; Beefeater is headquartered in London A United States investor purchases $15,000 worth of Irish bonds, which pay 7% interest per year Boeing, which is a company headquartered in the U.S., builds a $185,000 factory in Vietnam to produce some of its airplanes Consumers in Spain purchase $90,000 worth of Under Armour sweatshirts; Under Armour is headquartered in Maryland Johnny Depp, who lives in the U.S., flies over a personal makeup artist from Switzerland for $25,000 to do his makeup for him for his next movie A Norwegian investor purchases $12,000 worth of United States treasury bonds, which pay 6 % interest per year a. What is the U.S. current account balance? (6 pts) b. What is the U.S. financial account balance? (6 pts)
Step by Step Solution
★★★★★
3.49 Rating (146 Votes )
There are 3 Steps involved in it
Step: 1
a What is the U S current account balance 6 pts ANS WER The U S current account balance is a surplus of 87 000 WORK ING A Ukrainian investor purchases ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started