Question
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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