Q2: (10 marks) 1- Indicate whether each of the following items represents a debit or a credit on the Palestine balance of payments: A. A Palestine importer purchases a Jordanian juice. B. A German automobile firm builds an assembly plant in Jerusalem. C. A French manufacturer exports machinery to Egypt on a Palestine vessel. D. A Palestinian college student spends two years studying in USA. E. Palestinian charities donate food to people in drought-plagued Africa. F. Japanese investors collect interest income on their holdings of Palestinian government securities. G. A German resident sends money to her relatives in Palestine. H. Bank of Palestine sells an insurance policy to a Palestinian business firm. I. A British resident receives dividends on his Jawwal stock. 2- You are given the following spot exchange rates: $1 = 3 francs, $1 = 4 schillings, and 1 franc = 2 schillings. Ignoring transaction costs, how much profit could a person make via three-point arbitrage