The transactions below come from Dune by Frank Herbert. Show how each is recorded in the balance of payments for the specified location. Remember, each transaction produces two entries for that location. If a part of the transaction involves the current account, you must specify which portion of the current account is involved (i.e., the trade balance, net factor income from abroad, or net unilateral transfers). Each question is worth one point. EXAMPLE: Record this transaction in the planet Giedi Primes balance of payments account. The House Karkonnen of the planet Giedi Prime pays one million solaris for a crysknife from the planet Arrakis. Answer: The crysknife shipment is booked as an import (IM) (1 million solaris) in the trade balance (TB) portion of Giedi Primes current account (CA). The payment for the crysknife booked as an asset export (EXA) (+1 million solaris) in Giedi Primes financial account (FA).

(To get full credit, you must use the format of the example answer above for your answers.)

4. Record this transaction in the balance of payments account of the planet Caladan. The House Atreides, which is resident on the plane Caladan, buys five percent of the shares of CHOAM, the interplanetary conglomerate corporation, which is not headquartered on the planet Caladan, for 1 billion solaris.