Determine which account of the Balance-of-Payments is affected by each of the following transactions. (E.g. Current Account - Transfers)

(i)A local tourist uses his/her credit card to pay US$ 900 for the cost of accommodation at a Canadian hotel.

Answer 1Choose...Capital/Financial Account - Portfolio InvestmentCurrent Account - Imports (Services)Current Account - TransfersCurrent Account - Exports (Goods)Capital/Financial Account - Capital TransferCurrent Account - Exports (Services)Current Account - Imports (Goods)Capital/Financial Account - Foreign Direct Investment

(ii)A local company buys equipment valued at US$1 million from an American firm.

Answer 2Choose...Capital/Financial Account - Portfolio InvestmentCurrent Account - Imports (Services)Current Account - TransfersCurrent Account - Exports (Goods)Capital/Financial Account - Capital TransferCurrent Account - Exports (Services)Current Account - Imports (Goods)Capital/Financial Account - Foreign Direct Investment

(iii) A German company sells its holdings of $15 million local stocks.

Answer 3Choose...Capital/Financial Account - Portfolio InvestmentCurrent Account - Imports (Services)Current Account - TransfersCurrent Account - Exports (Goods)Capital/Financial Account - Capital TransferCurrent Account - Exports (Services)Current Account - Imports (Goods)Capital/Financial Account - Foreign Direct Investment

(iv) A local parent sends 500 Euros to his/her son who is studying engineering at a German university.

Answer 4Choose...Capital/Financial Account - Portfolio InvestmentCurrent Account - Imports (Services)Current Account - TransfersCurrent Account - Exports (Goods)Capital/Financial Account - Capital TransferCurrent Account - Exports (Services)Current Account - Imports (Goods)Capital/Financial Account - Foreign Direct Investment

(v)A local company exports rum valued at US$ 1 million to the United States. Payment is made to the Jamaican company's account at Citibank's Kingston branch.

Answer 5Choose...Capital/Financial Account - Portfolio InvestmentCurrent Account - Imports (Services)Current Account - Transfers Current Account - Exports (Goods)Capital/Financial Account - Capital Transfer Current Account - Exports (Services)Current Account - Imports (Goods)Capital/Financial Account - Foreign Direct Investment

3. A US company pays interest for $30,000 matured on its bonds held by a German investor. The payment is in Dollars. The German investor sells the Dollars to the European Central Bank (official institution). How do you record this transaction in the US Balance of Payments? Current Account $30,000 Financial Account (Non-official) (a) Financial Account (Official) $30,000 Current Account Financial Account (Non-official) (b) $30.000 $30,000 Financial Account (Official) Current Account $30,000 Financial Account (Non-official) (c) Financial Account (Official) $30,000 Current Account Financial Account (Non-official) (d) 530,000 Financial Account (Official) $30,000 3Which of the following statements about financial accounting is false? Financial accounting helps solve agency problems between capital providers and company managers. Financial accounting primarily seeks to provide useful information to existing and potential investors, lenders, and other creditors. Financial accounting is catered to all user groups, including managers, tax authorities, and investors. Financial accounting helps reduce information imbalances between company insiders and company outsiders.17. Managerial accounting is different from financial accounting in that O Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors. O Managerial accounting is mainly used to set stock prices, O Managerial accounting never includes nonmonetary information. O Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions O Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization. Fair MeGrow Hill Education.3. Assume that the US resident uses his 112,000 JPY to purchase a camera from a store in Japan and then brings it back to the US. The transaction can be recorded by noting the foowing (for the US): (a) +$1.000 Financial account, $1.000 Capital account. (b +$1.000 Financial account, $1.000 Current account. (c +$1.000 Current account, $1.000 Financial account. ) l (d) +$1.000 Financial account, $1.000 Financial account. (e) +$1.000 Capital account, ~$1.000 Financial account