the columns at the bottom. The first is done as an example. Transaction Current Account: Inflow of Dollars Current Financial Account: Account: Outflow Inflow of of Dollars Dollars Financial Account: Outflow of Dollars $400 A A U.S. business sells $400 of soybeans to China B A Chinese financial firm buys $800 15% stake in U.S. based firm U.S. workers in Ireland receive $350 in payments D A Chinese firm sells $1100 of machinery to the U.S. E A Chinese airline provides $200 of flights to U.S. residents F A U.S. firm buys 20% ownership in a German business for $1000 A U.S. financial firm buys $700 of Japanese bonds H A U.K. financial firm buys $1050 of U.S. stocks, none totaling over 10% of outstanding shares 1 Armenians in U.S. send $100 home to relatives J Chinese financial firm earns $100 in interest from U.S. trensuries held L U.S. provides advertising for Japanese automakers for $600 Column Totals G b. Does the U.S. haven current account surplus (inflow of dollars) or deficit (outflow of dollars)? How much? Does the US, financial account have a net inflow of dollars or a net outilow of dollars? b. Does the U.S. have a current account surplus inflow of dollars) or deficit (outflow of dollars)? How much? c. Does the U.S.financial account have a net inflow of dollars or a net outflow of dollars? How much? Use the letters in the first column to answer the following questions. Which transaction(s) represent a remittance? Which transaction(s) represent a direct investment? d. e. f. Which transaction(s) represent a U.S. export of goods? Which transaction(s) represent a U.S. service export? Which transaction(s) represent a portfolio investment? h. i. What is the total amount of dollar inflows? j. What is the total amount of dollar outflows? (Hint: Inflows will equal outflows.) e. f. Use the letters in the first column to answer the following questions. d. Which transaction(s) represent a remittance? Which transaction(s) represent a direct investment? Which transaction(s) represent a U.S. export of goods? Which transaction(s) represent a U.S. service export? Which transaction(s) represent a portfolio investment? i. What is the total amount of dollar inflows? 1. What is the total amount of dollar outflows? (Hint: Inflows will equal outflows.) 8 h. 2. Use I+G-T-S-CA to answer the following question. A country is running a government budget deficit of $200, so G-Tis $200, which means the government must borrow $200 in funds. Investment in the country is $800, so firms want to borrow this amount to finance their expansions. The country is saving $600. What does this say about the current account? (What is its value? Is it positive or negative)