Problem 1: Balance of Payments (30 points) A. A Mexican traveler goes to Brazil to purchase a gemstone for 3,000 Real (Brazilian currency). The Brazilian company that sells the gemstone subsequently deposits the 3,000 Real into its account at a Panama bank. How would these transactions be reflected in Mexico and Brazil's balance of payments accounts? B. Can a country simultaneously have a current account surplus and a balance of payments deficit? Provide a numerical example. C. Assuming that the unilateral transfer is zero, find the merchandise trade balance, net exports (services and income), the current account balance, and the capital account balance. Merchandise exports, 100 Merchandise imports, 125 Tourism exports, 90 Insurance imports, 80 Income receipts from abroad (profit - multinationals), 110 Income payments (interest payments) to foreigners, 150 Increase in home country's ownership of assets abroad, 160 Increase in foreign ownership of assets in home countries, 200 D. Country X has released its balance of payments data for the fiscal year 2022. The data shows the following: A trade deficit of $500 million (imports are greater than exports). A surplus in the services sector of $200 million. Primary income from abroad is $100 million. Secondary income (transfer payments) shows a deficit of $50 million. The financial account shows an inflow of $400 million due to foreign investments in Country X. There are also recorded outflows of $150 million in the form of investments by residents of Country X in other countries. Based on this information, answer the following: 1. Calculate the balances of the current account and the capital and financial account. 2. Discuss briefly what the implications of these balances could be for Country X's economy. 3. How might Country X's central bank respond to these figures in terms of its foreign exchange reserves and monetary policy