Exercise 1 Consider an economy with four non-financial agents x, Y and 2, H and a single commercial bank A. It is assumed that all agents have accounts with bank A. A Record in the bank's balance sheet all the following transactions. Specify for each for each transaction, specify whether there is monetary creation or not, justifying your answer. - On 01/02/2021: X sells goods in cash to a customer Y for an amount of 50,000 in exchange for a check. - 05/02/2021: Bank A buys iand from company Z for an amount 500,000. - On 15/02/2021: X sells goods to a customer H for an amount of 200.000 against acceptance of a draft at 120 days. - On 20/02/2021: To ensure a business trip abroad, company X asks for 2000 from its bank (it is assumed that 1=S1i - 20/03/2021: In need of liquidity, X decides to discount the draft given by H at its bank. Balance of the current account Seasonally and calendar adjusted, as % of GDP UE = European Union Zone Euro = Euro Zone 5% 4% -UE Zone euro 3% 2% 1% 0% -1% -2% ec.europa.eufeurostat 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Current account (in billions of euros and as a % of GDP) 2020 Q1 Amount % of GDP France -25.2 -1.1 Germany 245.4 7.1 Spain 25.6 2.1 Italy 55.5 3.1 United Kingdom -76.1 -3.0