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Classify the following transactions into CA-Current Account vs FA Financial Account and debit vs credit on the US Balance of Payment. The first one was
Classify the following transactions into CA-Current Account vs FA Financial Account and debit vs credit on the US Balance of Payment. The first one was done as an example.
a. A US-based pension fund buys bonds issued by the German government for its investment portfolio. FA; Debit b. American Airlines buys jet fuel at Ontario airport (Canada) for its flight to Chicago. c. Walmart purchases merchandise from China to resell in its U.S stores.
d. Boeing sells $1 billion of its airplanes to China.
e. A Japanese auto company pays the salaries of its executives working for its U.S. subsidiaries.
f. A Canadian investor receives dividend payment from Microsoft.
g. Berkshire Hathaway purchases bonds issued by of some Chinese firms.
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