Ill. Questions 1. Record the following US balance of payments transactions, using entries like those shown in Tables 1-4 of this chapter's Summary and Review above. a) The US. exports $500 of computers to France, with payment in dollars to take 121 place in three months b) The U.S. imports $400 of goods from the U.K., making immediate payment by buying pounds from a U.K. bank c) You travel to the U.K. for a holiday and spend $300 d) The U.S. gives aid of $200 to a developing country e) A U.S. citizen buys $100 of stock (a long-term asset) in Belgium and pays with Euros. The Euros are purchased from a U.S. bank that reduces its holdings of Euros and increases its holdings of dollars f) A U.K. citizen buys a $50 short-term U.S. Treasury bill. The U.K. citizen buys the dollars from a U.S. bankc) Calculate the US. balance of trade in goods and services in this example. cl) Calculate the US. balance on current account in this example. e) Calculate the US. balance on financial account in this example. f) Is the entire U.S. balance of payments in the above table in deficit or surplus? 122 2. a) Using the transactions you recorded in Question 1, fill in the US. balance of payments table below. Note that a number of the transactions you recorded in Question 1 involved numerous short-term financial ows; it's useful to net all the short-term financial capital debits and credits into one number. U.S. Balance of Payments \" Merchandise Exports Merchandise Imports Tourist Services Unilateral Transfers Long-Term Financial Flows Short-Term Financial Flows b) Calculate the US. balance of trade in this example