Problem 4. Balance of Payments. The table below is a summary of the balance of payments of Flo- rentonia. Item A. Current Account Goods: exports Value of Item -1000 ??? Goods: imports -7000 Balance on Goods -2000 Services: credit Services: debit Balance on Services Balance on Goods and Services Primary Income: credit 3500 ??? 1500 ??? 100 Primary Income: debit -1200 Balance on Primary Income -1100 Balance on Goods, Services and Income -1600 Unilateral Transfers, net 600 B. Capital Account, net 400 C. Financial Account ??? Direct Investment Assets 0 Portfolio Assets 150 1400 -1200 350 400 350 Other Investment Liabilities 250 1000 -100 -150 Other Investment Assets Reserve Assets Net Acquisition of Financial (Foreign) Assets Direct Investment Liabilities Portfolio Liabilities Net Incurrence of Liabilities Financial Derivatives, net Statistical Discrepancy a) Recover the missing entries, indicated with "???". Explain how you compute them. (Hint: Carefully read page 301 of Sawyer Sprinkle where they explain that the item "Net Acquisition of Financial Assets" enters with opposite sign similar to "Financial Derivatives, net".) b) Consider the balance of payments of Florentonia. For each of the following transactions describe both entries into the appropriate category of the balance of payments (be specific for the Current account referring to the categories above). For each transaction, say whether the current account is affected. i) The PaperPencil company in Florentonia pays $ 100 in salary to an employee who is a citizen of Londratonia. ii) A foreigner buys a share of the PaperPencil company incorporated in Florentonia worth $ 10. iii) The central bank of Florentonia buys government bonds of Londratonia worth $ 200. iv) The PaperPencil corporation buys tables for its offices from a firm located in Londratonia and pays $ 1100. v) After a pandemic affects Florentonia, the government of Londratonia sends $2,000 worth of medical aid.