Question 3:

Complete the chart for the Balance of Payments record for the US. You will be given a transaction. Put a plus or minus (+ or - ) in the correct column:

Transaction

Current Account

Capital Account

Financial Account

US companies sell goods to citizens in the European Union.

A US corporation buys clothing factory in Mexico for manufacturing.

Chinese investors buy stocks in the US.

US citizens increase travel to South Korea for the Olympics.

The US forgives a debt owed to it by Nicaragua.

A US corporation buys a chocolate business in Belgium.

Ms. Jones, a US citizen teaching in China, sends 75% of her salary to her US account.

US producers import palm oil from Indonesia.

A US company buys water rights in a foreign country.

The US government gives a gift of $500,000 to a country in South America.