QUESTION 1: a) Briefly explain and show in the table below how each of the following transactions would be entered in the Spanish balance of payments. Note that all the amounts in the Spanish balance of payments are recorded in euros. I) Tourists from Germany spend 3,000,000 euros on vacation in Spain. They pay with checks on their banks in Germany. II) Zara US Inc. (a Spanish company operating the US) pays a dividend of US$2,000,000 to its shareholders in Spain. Zara US Inc. converts the US$ for euros at the central bank of Spain (assume that the dollar/euro exchange rate is US$2/). III) Beyonce (a US singer) is paid 600,000 euros for a concert in Madrid (Spain). Beyonce wants to hold US$ instead of euros, so she exchanges 600,000 euros for US$ at the central bank of Spain (assume that the dollar/euro exchange rate is US$2/). Spanish Balance of Payments (in euros) CREDIT (+) DEBIT (-) Current Account Capital Account Financial Account