Question
For each of the following transactions, indicate which accounts on the Malaysian balance of payments statement would be affected, and determine whether the entry would
For each of the following transactions, indicate which accounts on the Malaysian balance of payments statement would be affected, and determine whether the entry would be a credit or a debit. (i) A local bank makes a loan of RM100,000 to an Indonesian food processor. The loan is funded by creating a RM100,000 deposit for the Indonesian firm in local bank. (ii) A local firm sells RM2 million worth of corn to a Indonesian firm. The corn is paid for with the bank account created in local bank. (iii) A Malaysian resident receives RM30000 in interest from German bonds that she owned. The RM30000 is deposited in a German bank. (iv) A Malaysian travels to Europe and spends RM30, 000 German deposit. (v) The Malaysian government gives RM25000 worth of wheat to Nicaragua
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