Problem 1 Explain how each of the following transactions generates two entriesa credit and a debitin the Japanese balance of payments accounts, and describe how each entry would be classified: Problem 2 (a) A Japanese investor buys a share of a stock company in Thailand, paying by writing a check on an account with a Singapore bank. (b) A Japanese investor buys a share of a Thai stock company, paying the seller with a check on a Japanese bank. (c) The Malaysian government carries out an official foreign exchange intervention in which it uses Yen held in a Japanese bank to buy ringgit (Malaysian currency) from its citizens. (d) A tourist from Kyoto buys a meal at an expensive restaurant in Bangkok, paying with a traveler's check. (e) A sak brewery in Kobe contributes a case of sak bottles for a Paris wine tasting event. (f) A Japanese-owned factory in Germany uses local earnings to buy additional machinery. Mexican travels to Brazil to buy a gemstone which costs 3,000 Real (Brazilian currency). The Brazilian company that sells the gemstone then deposits the 3,000 Real in its account in a Panama bank. How would these transactions show up in the balance of payments accounts of Mexico and Brazil? What if the Mexican pays cash for the gemstone? Problem 3 The nation of Pecunia had a current account deficit of $1 billion and a nonreserve financial account surplus of $500 million in 2021. (a) What was the balance of payments of Pecunia in that year? What happened to the country's net foreign assets? (b) Assume that foreign central banks neither buy nor sell Pecunian assets. How did the Pecunian central bank's foreign reserves change in 20217 How would this official intervention show up in the balance of payments accounts of Pecunia? (c) How would your answer to (b) change if you learned that foreign central banks had purchased $600 million of Pecunian assets in 2021? How would these official purchases enter foreign balance of payments accounts? (d) Draw up the Pecunian balance of payments accounts for 2021 under the assumption that the event described in (c) occurred in that year