Question
Please identify each of the transactions on the U.S. Balance of Payments that follow by putting checks marks in the correct boxes (one check for
Please identify each of the transactions on the U.S. Balance of Payments that follow by putting checks marks in the correct boxes (one check for either credit or debit and one check for either Current Account or Capital Account). I have done the first one for you, just in case you wanted a little help. Thank you.
Event | Credit (+)
| Debit (-) | Current Account | Capital Account |
John Deere USA purchases $50 million in tractor parts from a Mexican company. | ||||
A Brazilian entrepreneur pays $75 million for a theme park in Ohio. | ||||
A USA company buys $10 million in stock of a Cuban cigar company. | ||||
A Spanish music store buys $80 million worth of USA made clothing and shoes. | ||||
A Russian investor buys $40 million worth of U.S. Treasury bonds. | ||||
Australian tourists spend $25 million in the USA while U.S. tourists spend $75 million in Australia. |
The Foreign Exchange Market
Currency | 2016 Cost of Foreign Currency in US $ (US $ / Foreign Currency) | 2019 Cost of Foreign Currency in US $ (US $ / Foreign Currency) | 2016 Cost of US $ in Foreign Currency (Foreign Currency / US $) | 2019 Cost of US $ in Foreign Currency (Foreign Currency / US $) |
British Pound Sterling | 1.35 | 1.30 | 0.74 | 0.77 |
Canadian Dollar | 0.74 | 0.75 | 1.35 | 1.33 |
Chinese Yuan | 0.15 | 0.14 | 6.65 | 7.07 |
European Euro | 1.22 | 1.11 | 0.82 | 0.90 |
Japanese Yen | 0.0091 | 0.0092 | 109.86 | 108.52 |
Mexican Peso | 0.055 | 0.051 | 18.23 | 19.57 |
Please use the above table to complete this table:
Purchase | 2016 Spending in US $s | 2019 Spending in US $s | $ Appreciate OR $ Depreciate? |
Dinner for two: 775 Pesos | |||
Hotel Room: 60,000 Yen | |||
Jeans: 80 Pounds | |||
Leather Coat: 2,100 Canadian Dollars | |||
A BMW: 85,000 Euros | |||
iPhone 11: 5,800 Yuan |
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