Suppose there are only two countries in the world, Canada and Mexico. All the international transactions in 2020 are summarized below in Canadian dollars.

Mexican hedge funds sold $400 worth of derivatives to Canadian investors. Canada sold $400 maple syrup to Mexico. . Maria Garcia received $200 as birthday gift from her cousin in Cancun while she sent $400 to her grandmother in Mexico City for a new tablet. The central bank of Mexico purchased $600 of newly printed money from Bank of Canada. Mexican tourists spent $500 on tickets for Toronto Raptors games. . Canadian investors purchased $700 worth of Mexican corporate bonds and sold $200 worth of Mexican corporate bonds to Mexican investors. Canadian investors received $300 dividends from Mexican corporations. . Bank of Canada sold $200 worth of Mexican government bonds to the central bank of Mexico. Ontario farmers hired Mexican seasonal helpers and paid them $600. Canada wrote off $300 loans to Mexican government. . Canadians purchased Mexican rums for $900. Canadian tourists spent $500 in Cancun. Mexican investors purchased $500 worth of newly issued Petro Canada bonds and Bank of Nova Scotia retired $200 worth of its bonds from Mexican investors. (a) Use the information provided above to set up a table to show the balance of payments accounts (you must enter each transaction into the correct account with the correct sign to receive marks). (15 marks) (b ) Calculate the balance of payment official settlements balance and change in official reserve assets and explain what it represents. (4 marks)