Calculate e) and f)Thank you. For each of the following transactions, determine which U.S. balance of payments account is credited and which is debited and by howmuch. Assume payments for all transactions are deposited into a U.S. dollar-denominated bank account.Instructions: Enter your answer as a whole number.a. The United States imports $10 million worth of furniture from Sweden.A credit is made to the financial account v for $10 million.A debit is made to the current accountfor $10 million.b. U.S. investors purchase $5 million in stock from companies located in Southeast Asian countries.A credit is made to the financial account v for $5 million.A debit is made to the financial account v for $5 million.c. The United States exports $25 million in wheat to Mexico.A credit is made to the current accountv for $25 million.A debit is made to the financial account v for $25 million.d. Chinese investors purchase $2 miltion in U.S. government bonds.A credit is made to the financial accountfor $2 million.A debit is made to the financial accountfor $2 million.Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.e. What is the net balance of each account?Current account: $millionFinancial account: $|1million< PrevNext >11 of 13 d. Chinese investors purchase $2 million in U.S. government bonds.cesA credit is made to the financial account v for $2 million.A debit is made to the financial account v for $2 million.Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.e. What is the net balance of each account?Current account: $TEmillionFinancial account: $millionCapital account: $millionf. What is the sum of all accounts (current, financial, and capital)?$4million...McGrawHill< Prev11 of 13Next >pe here to searchEndPoPrtScnHomeF10DIIF8F7F6F3F4F2

e) Current account = -$10+ $25 = $15 million (credits are added and debited are minus-ed) Financial…

For each of the following transactions, determine which U.S. balance of payments account is credited and which is debited and by how much. Assume payments for all transactions are deposited into a U.S. dollar-denominated bank account.

For each of the following transactions, determine which U.S. balance of payments account is credited and which is debited and by how much. Assume payments for all transactions are deposited into a U.S. dollar-denominated bank account.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter36: Exchange Rates And Financial Links Between Countries

Section: Chapter Questions

Problem 13E

See similar textbooks

Similar questions

You own a local company. In the past year, you successfully expanded your sales market into Europe, and you now have profits and cash denominated in euros. You want to convert the euros to your home country currency to repatriate the profits and pay taxes. You are a. not required to convert the euros to the home currency to pay taxes. b. a demander of the euro in the foreign exchange market. c. a supplier of your home country's currency in the foreign exchange market. d. a demander of your home country's currency in the foreign exchange market.
Indicate whether each of the following items represents a debit or a credit of the US balance of payments: Deposit in a Chicago bank of $15,000 by a resident of South Africa. O Debit Credit
Look at each of the cases below from the point of view of the balance of payments for Canada. Determine the subcategory of the current account or financial account that each transaction would be classified in, and state whether it would enter as a credit or debit. a. A migrant worker in Ottawa sends $500 home to his village in Mexico. b. A Canadian charity donates five tons of rice to the Sudan to help with famine relief. c. A Canadian retired couple flies from Vancouver to Tokyo on Japan Airlines.
Currency Exchange Vietnamese bank rate Saigon Airport exchange bureau rate Hotel exchange bureau rate Assuming an intial cash amount for exchange to dong of: Page Rate d19,800 d19,500 d19,400 Problem 4 Vietnamese Coffee Coyote Many people were surprised when Vietnam became the second largest coffee producing country in the world in recent years, second only to Brazil. The Vietnamese dong, VND or d, is managed against the U.S. dollar but is not widely traded. If you were a traveling coffee buyer for the wholeale market (a "coyote" by industry terminology), which of the following currency rates and exchange commission fees would be in your best interest if traveling to Vietnam on a buying trip? 4 $10,000.00 > of 6 Commission 2.50% 2.00% 1.50%
6) Which of the following transactions represents debit on the current account section of the US's balance of payments? (a) The Arab Capital Investment Corporation makes a loan to a US firm; (b) A US company exports goods to Canada; (c) US firms and individuals receive dividends on investments made in Latin America; (d) US tourists in England purchase British pounds.
Identify each transaction by whether it belongs in the US current account or financial account: A French corporation buys a chain of hotels in the United States O Financial Account O Current Account
Reducing Economic Exposure Colorado, Inc., is a U.S.-based MNC that obtains 10 percent of its supplies from European manufacturers. Sixty percent of its revenues are due to exports to Europe, where its product is invoiced in euros. Explain how Colorado can attempt to reduce its economic exposure to exchange rate fluctuations in the euro.
why, according to some economists, should canada adopt the U.S dollar as its currency?
Assume you have $1,000,000 and are given the following information. What is the triangular arbitrage opportunity? Value of a British Pound in U.S. dollars Value of a Euro in U.S. dollars Value of a British Pound in Euros USD1.80 USD1.25 Euro 1.44
_______Refers to the market for national currencies of different countries in the world?
If one U.S. dollar is traded on the foreign exchange market for about 0.89 euros, then one euro can purchase about U.S. dollars. a) 0.75 b) 1.12 c) 1.75 d) 0.89
19. In balance-of-payments accounting, the sale of a foreign production facility by a SA firm is a item in the SA balance of payments; the deposit of funds in a foreign bank account by a SA citizen item in the SA balance of payments. A Debit; also is a debit B Debit; is a credit C Credit; is a debit D Credit; also is a credit 20. The table below shows a section of the national accounts for a small country in 2018. Answer the question that follows using the information provided in the table. 9 800 Consumption expenditure Government expenditure 3 500 Depreciation Exports Imports Gross capital formation (investment) 500 2 200 1 900 2 500 Primary income payments Primary income receipts 300 200 The value of Gross Domestic Product (GDP) is: A 16 100 В 19 900 16 600 D 15 600 21. To calculate gross national income (GNI) from gross domestic product (GDP), must be added and must be subtracted from GDP. A Primary income payments; primary income receipts B Primary income receipts; primary income…