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A. Current Account . (Assume, currency examples are in billions of US dollars) Trade in goods: Debit: U.S. firm purchases German machine tools for $1,224.23

A. Current Account. (Assume, currency examples are in billions of US dollars)

Trade in goods:

Debit: U.S. firm purchases German machine tools for $1,224.23

Credit: Singapore Air Lines buys Boeing jet(s) for 774.86

Trade in services:

Debit: American citizens take trips on a Dutch cruise line $217.07

Credit: The Brazilian tourist agency sends its customers on regular tours to the US and pays for various services in the amount of $290.88

Income payments and receipts:

Debit: The U.S. subsidiary of a Taiwan computer manufacturer pays dividends to its

parent $217.68

Credit: British banks pay the salary of their executives stationed in New York $200.00.

Unilateral current transactions.

Debit: The U.S.-based International Rescue Committee pays for essential supplies to

Haiti earthquake victims $150.00

Credit: A Spanish company pays tuition for an employee to study for an MBA in the

United States $152.90

B. Capital and C. Financial Accounts - Main components

The main components and possible examples are:

Debit: Ford Motor Company purchases land for building a factory in Australia $4.39

Credit: Ford Motor Company sells its additional land holding adjacent to its factory in

Britain to British investors $2.24

Direct investment.

Debit: Ford Motor Company builds a factory in Australia $212.44

Credit: Ford Motor Company sells its factory in Britain to British investors $295.68

Portfolio investment.

Debit: An American Pension Fund buys shares ($99.74) and bonds ($25.20) of a few

firms quoted in the Frankfurt Stock Exchange for $124.94

Credit: Investors in Korea buy United States treasury bills ($280.74) and other equity

securities ($193.85) quoted in the NYSE for $474.59

Other investment.

Debit: U.S. firms deposit $303.27 in banks in London.

Credit: U.S. banks generate a short term deposit from banks in Canada $262.64

D. Errors and Omissions

There were a few irreconcilable items with a net credit balance of $0.73

what is the total through accounts A +B +c+D =$

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