Problem 1 Table 1 gives hypothetical figures for U.S. International Transactions. Table 1.U.S. International Transactions Amount Transaction (billions of dollars) Merchandise imports 110 Military transactions, net -5 Remittances, pensions, transfers -20 U.S. private assets abroad -50 Merchandise exports 115 Investment income, net 15 U.S. government grants (excluding military) -5 Foreign private assets in the U.S. 25 Compensation of employees -5 Allocation of SDRs 5 Travel and transportation receipts, net 20 Based on the information provided in Table 1, how much is the current account balance? Show your work. Problem 2 Table 2. Forward Exchange Rates U.S. Dollar Equivalent Wednesday Tuesday Switzerland (Franc) .6598 .6590 30-day Forward .6592 .6585 90-day Forward .6585 .6578 180-day Forward .6577 .6572 a. Refer to Table 2. On Wednesday, how much was the 180-day forward franc selling at? Show your work. b. Refer to Table 2. Comparing the franc's forward rates against the franc's spot rate, what is the exchange market's consensus on the franc's spot rate against the dollar over the period of a forward contract? In other words, will the franc's spot rate appreciate or depreciate against the dollar? Explain your reasoning