For each of the following transactions, determine the following: a. Is it an inflow (+) or outflow (-)? b. What type of transaction is it (e.g. export of goods, current transfer....)? Which account does it belong to (i.e. current a/c, capital a/c or financial a/c)? C. Your friend sent you money from Yemen. 1. A Korean company has built a factory in Saudi Arabia. 2. A Saudi investor bought shares in an Australian company. 3. A Canadian citizen has taken a loan from Rajhi Bank. 4. A Kuwaiti has moved to live in Saudi Arabia and brought his car along with him. 5. United Nations has given a grant (i.e. money) to the Saudi government. 6. Aramco has sold oil to Shell, a Dutch company. 7. Al-Jazirah has imported Ford cars from the U.S. 8. You went on a vacation to Turkey and went on a boat ride. 9. You, a Saudi, got a haircut here in Yanbu. Transaction no. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 Inflow (+) or Outflow (-) Inflow + Inflow + Outflow - Outflow- Inflow + Inflow + Inflow + Outflow - Outflow- neither Type of transaction Current Transfer (private) Direct Investment Portfolio Investment Other financial flows Capital Transfer Current Tranfer (capital) Account Current Financial Financial Financial Capital Current Current Current Current Export of goods Import of goods Import of services This is not a transaction to be recorded Not in the Balance of Payments applicable Throughout this question, assume a flexible exchange rate between the US$ and SR. Draw a graph showing the Demand curve and Supply curve for Saudi Riyals. Label the x-axis as "Quantity of riyals traded" and the y-axis as "Exchange Rate ($/SR)". Then show what 61 Page6 happens when Americans start demanding more Saudi oil. Does the exchange rate increase (appreciate) or decrease (depreciate)? In other words, do you need more Saudi riyals to buy one US dollar or less?