Consider the US economy that engaged in the following hypothetical transactions in 2020with the rest of the word:

a) Wal Mart bought $100 million worth of Chinese-made toys, paying by writing a check on an account with a local bank in Shanghai.

b) Mexican air lines bought $75 million worth of air jets of Boeing 747, paying by writing checks on an account with a local bank in Mexico.

c) Intel Corp. licensed manufacturing technologies to Taiwanese semi-conductor makers. The license fee totaled $50 million and was paid by the Taiwanese producers who wrote checks on their accounts with an American bank located in San Francisco.

d) European people traveled to New York and spent $10 million in cash for food, transportation, entertainment, etc.

e) The U.S. government donated $5 million worth of food to Sudan.

f) Microsoft paid $12 million dividends to its Japanese shareholders. The checks were written on an account with a bank located in Tokyo.

g) European investors purchased $120 worth of U.S. Treasury bills, paying by writing checks on an account with a local bank in London.

h) A U.S. auto dealer imported $30 million worth of Toyota's passenger cars and paid the Japanese auto company with a check issued by an American bank for $30 million. Toyota did not want to invest in dollar assets and therefore sold the check of $30 million to the Bank of Japan (Japan's central bank) for yens.

i) The Federal Reserve sold its holdings of British pounds to a Swiss bank. The Swiss bank paid fort he British pounds by writing a $10 million check. Answer the following questions[Note: You must show your work to support your answers.]

1.Compute the US current account balance.

2.Compute the US financial account balance.

3.Did the US experience a net financial capital inflow or outflow? Why?

4.Determines whether the US had a balance of payment deficit or surplus in 2020.

5.Explain the international financial relationship between the US and the rest of the world based on the current account, financial account, and central bank intervention in the foreign exchange markets.