Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following transaction: An Australian company sells 10,000 tonnes of iron ore to a Japanese steel producer. The per tonne price is $100. How

Consider the following transaction: An Australian company sells 10,000 tonnes of iron ore to a Japanese steel producer. The per tonne price is $100. How would this be accounted for in the Australian balance of payments?

A. An AUD1m debit in the financial account representing the AUD payment. An AUD 1m credit in the current account representing the iron ore.

B. None of the other answers.

C. An AUD1m credit in the financial account representing the AUD payment. An AUD 1m debit in the current account representing the iron ore.

D. A debit in the financial account representing the payment. A credit in the current account representing the iron ore. The value of the credit and the debit will depend on the S(JPY/AUD) spot rate.

E. A credit in the financial account representing the payment. A debit in the current account representing the iron ore. The value of the credit and the debit will depend on the S(JPY/AUD) spot rate.

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

Step: 3

blur-text-image

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

The Evolution Of Finance

Authors: Barbara Guth

1st Edition

1633377261, 978-1633377264

More Books

Students also viewed these Finance questions

Question

i need correct answrrs 8 2 . ' '

Answered: 1 week ago

Question

Differentiate the function. r(z) = 2-8 - 21/2 r'(z) =

Answered: 1 week ago

Question

1. Identify three communication approaches to identity.

Answered: 1 week ago

Question

d. Who are important leaders and heroes of the group?

Answered: 1 week ago

Question

3. Describe phases of minority identity development.

Answered: 1 week ago