Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Component: Payments for goods and services/Primary Income/Secondary Income Cash Flow Position:Inflow/Outflow Entry: Debit/Credit Known as: Other capital investment/Portfolio investment/Direct foreign investment For each transaction in

image text in transcribed

Component: Payments for goods and services/Primary Income/Secondary Income

Cash Flow Position:Inflow/Outflow

Entry: Debit/Credit

Known as: Other capital investment/Portfolio investment/Direct foreign investment

For each transaction in the table, indicate the current account component, cash flow position, and type of entry on the balance-of-payments account. US Cash Flow Position Entry on US Balance-of- Payments Account Transaction Component Consumers in Japan purchase baseball jerseys from their favorite US baseball teams. The jerseys are produced in the United States. An American investor owns stock in a Spanish company and receives a dividend payment from that company. The United States government provides foreign aid to another country after a natural disaster. Consider the case where company in Spain purchases stock in a US-based company. This component of the financial account is known as

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance And Public Policy

Authors: Jonathan Gruber

7th Edition

1319281109, 9781319281106

More Books

Students also viewed these Finance questions