Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show how the following transactions are entered into the US balance of payments: a.A US resident imports $500 worth of goods from the UK and

Show how the following transactions are entered into the US balance of payments:

a.A US resident imports $500 worth of goods from the UK and promises to pay in three months.

b.The US government gives $100K cash balance in a US bank to a developing nation as part of the US foreign aid program.

c.The US government gives $100K worth of food aid to a developing nation.

d.A US resident purchases a $1000 foreign stock and pays for it by drawing down her bank balances abroad.

e.A US resident receives a dividend of $100 on her foreign stock and deposits it in her bank account abroad.

f.A foreign investor purchases $400 of US Treasury Bills and pays by drawing down his bank balances in the United States.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

12th edition

1259918947, 1260091908, 978-1259918940

More Books

Students also viewed these Accounting questions