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Assume, currency examples are in billions of US dollars The main components and possible examples are: Capital Account: Debit: Ford Motor Company purchases land for

Assume, currency examples are in billions of US dollars

The main components and possible examples are:

Capital Account:

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

Financial Account:

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

The combined Capital and Financial Accounts for the year is $_______ billion

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