Question
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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