Using double-entry bookkeeping, how would each of the three international transactions affect the U.S. Balance of Payments statement? For each transaction, first indicate whether to credit/debit the current account (CA) or the financial account (FA). In case a financial account is affected, clarify whether it represents an increase or decrease in the U.S. holdings of foreign assets or an increase or decrease in foreign holdings of U.S. assets. In case a current account is affected, indicate which of the four items of the current account is affected.

1. A GVSU student, an American, studies abroad in London, paying her living expenses (room and board and tourism) using a credit card.

Credit________because of________ Debit________because of .

2. Bank of Japan (Japan's Central Bank) sold 100 billions worth of U.S. treasury securities on the open market.

Credit______because of______and Debit_____ because of______

3. China purchased 10 billion dollars worth of the 747 model airplanes from Boeing, paying with its US dollar foreign reserves.

Credit________because of______ and Debit_______because____