Question
Please help Calculate and record the following entries in the U.S. balance of payments accounts as applicable: what does a balance of payments look like?
Please help Calculate and record the following entries in the U.S. balance of payments accounts as applicable: what does a balance of payments look like?
a. The U.S. government uses its foreign demand deposits to purchase $8 from private foreigners in the U.S.
b. American tourists spend $30 abroad using traveler's checks drawn on U.S. banks.
c. The U.S. government sells abroad $45 in gold for foreign demand deposits.
d.The U.S. exports $300 of goods and receives payment abroad in the form of foreign demand deposits.
e. U.S. citizens purchase foreign stocks with $60, using foreign demand deposits held abroad.
f. The U.S. imports $225 of goods and pays for them by drawing down its foreign demand deposits.
g. The U.S. pays $15 to foreigners in dividends drawn on U.S. demand deposits.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started