Suppose that home country A has the following transactions with foreign country B. For each transaction, indicate and explain the appropriate debit and credit entry in As balance-ofpayments accounts.

a) A firm in country A sells $9,000 of iron & copper to a country B firm. Payment is made by the firm in B drawing down its checking account in a country A commercial bank.

b) An importer in country A buys $5,000 of apparel from a country-B supplier, paying for the goods by writing a check to be deposited into the B firms bank account in a country A bank