Question
6) Explain how each of the following transactions generates two entries-a credit and a debit in the Jordanian balance of payments accounts, and describe
6) Explain how each of the following transactions generates two entries-a credit and a debit in the Jordanian balance of payments accounts, and describe how each entry would be classified: a. (2 pts) A Jordanian oven manufacturer imports $200,000 in oven burners from a German firm. It uses a Jordanian bank account to pay for the burners. b. (2 pts) The Central Bank of Egypt buys $1 million in Jordanian Treasury bonds from a Jordanian securities firm. c. (2 pts) An Indian tourist charges $200 to his Mastercard (issued by an Indian bank) for a hotel room in Amman. d. (2 pts) An Italian company purchases $20,000 in tomatoes from a Jordanian farm. The Italian company uses deposits from a bank in Italy. e. (2 pts) A Swiss firm forgives a $180,000 loan to Jordan Petroleum Refinery Co. LTD.
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